In July 2025, Germany's Ifo Business Climate Index rose to 88.6, up from June's 88.4, achieving its highest point since May 2024. Despite this increase, it fell short of market predictions of 89.0, indicating cautious optimism persists. The enhancement was attributed to a minor rise in both current assessments (86.5 compared to 86.2) and business expectations (90.7 compared to 90.6), signifying that companies are slightly less pessimistic about the economic outlook.