German business sentiment improves less than expected in July - Ifo

(Sharecast News) - German business sentiment improved less than expected in July, according to a survey released on Friday by the Ifo Institute. The business climate index rose to 88.6 from 88.4 in June, coming in below expectations for a reading of 89.0.

The expectations index ticked up to 90.7 from 90.6 and the current situation index improved to 86.5 in July from 86.2 a month earlier.

The manufacturing gauge came in at -11.8 versus -13.9 in June, while the service sector index printed at 2.7, down from 3.8.

The index for trade was -20.2 in July versus -19.2 a month earlier, while the construction gauge printed at -14.0 versus -15.1

Ifo Institute president Clemens Fuest said: "The upturn in the German economy remains sluggish."

ING said: "German business sentiment is still riding the wave of optimism. Even though we still see a large portion of wishful thinking, the seventh consecutive increase in Germany's most prominent leading indicator remains remarkable. In July, the Ifo index came in at 88.6, slightly up from 88.4 in June, and stands now at its highest level since last summer.

"While expectations remained unchanged, the current assessment component finally improved, suggesting that growth in the third quarter could pick up again."