Ifo Business Climate Index rises in July after two falls in Germany

The Ifo Business Climate Index for industry and trade in Germany rises to 108.0 points in July after two falls in May and June, the Ifo institute reported here on Monday.

"Assessments of the current business situation improved significantly after last month's setback," Ifo president Hans-Werner Sinn said.

"The recent easing of the Greece situation contributed to stronger sentiment in the German economy," he added.

The climate index in manufacturing increased in July, as manufacturers are more optimistic about future business developments. Meanwhile, the indicator in wholesaling rose sharply, because assessments of the current business situation improved to the highest level since February 2012, the Munich-based think tank reported.

However, the index in retailing fell again and the indicator in construction also deteriorated after three increases, Ifo noted.

The Ifo Business Climate Index, considered the most important barometer for the German economy, is based on about 7,000 monthly survey responses from firms in manufacturing, construction, wholesaling and retailing. Endit