German Business Outlook Unexpectedly Hits Highest Since 2022 (1)

Confidence among German firms unexpectedly improved to the highest since 2022 after the European Union struck a trade deal with the US, despite some criticizing higher tariffs.

An expectations index by the Ifo institute rose to 91.6 in August from a revised 90.8 in July. Economists in a Bloomberg survey had expected a decline. A measure of current conditions worsened slightly.

“Companies are mostly hoping for things to get better,” Ifo President Clemens Fuest told Bloomberg TV on Monday. “But if we look at order intake and other current indicators, hard facts, we are not there yet.”

The survey ...