FX.co ★ German Business Morale Slightly Up in May

Germany’s Ifo Business Climate Index edged up to 84.9 in May 2026, from April’s six-year low of 84.5, slightly beating the consensus forecast of 84.2. Despite this modest improvement, the index remained subdued, underscoring mounting concerns that the Middle East conflict could weigh on Germany’s already fragile economic recovery. Companies’ assessment of current business conditions improved to 86.1 from 85.4, while expectations for the coming months rose marginally to 83.8 from 83.5.