German business mood improves again as ifo index edges up to 85.6

Business confidence in Germany improved for the second consecutive month in June, continuing to recover from the setback caused by the Iran war, the ifo Institute said on Wednesday.

The ifo business climate index rose by 0.6 points to 85.6 points, the Munich-based research institute said. The improvement was slightly stronger than expected, with analysts on average forecasting a rise to 85.5 points.

Companies assessed both their current business situation and their expectations more favourably. 

"German companies are hoping for geopolitical tensions to ease," ifo president Clemens Fuest said, commenting on the results of the monthly survey of 9,000 companies.