German Ifo business sentiment unexpectedly rises

BERLIN - German business morale unexpectedly rose in May, a survey showed on Friday, offering a glimmer of hope for Europe's largest economy.

The Ifo institute said its business climate index increased to 84.9 compared to a revised 84.5 in April.

Analysts polled by Reuters had forecast a decrease to 84.2.

Germany's economy has struggled to regain momentum since the pandemic, as rising competition from China and higher energy prices have strained its export-driven model.

The surge in energy prices triggered by the war in Iran poses a further threat to its long-awaited recovery.

(Reporting by María Martínez and Thomas Seythal)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published May 22, 2026 at 1:05 AM.