FAMAGUSTA GAZETTE — Germany’s business confidence rose in July to its highest level in more than a year, according to a closely watched survey, though economists warned that the recovery remains vulnerable amid global trade tensions.
The ifo Business Climate Index, based on responses from roughly 9,000 companies, edged up to 88.6 from 88.4 in June, marking the seventh consecutive monthly increase.
While firms reported improved conditions, their outlook for the coming months remained cautious.
Manufacturing sentiment ticked upward, with industrial capacity utilization rising to 77.2 percent from 70 percent.
However, incoming orders remained weak, and overall confidence in the sector stayed subdued.
The services sector saw a decline, driven largely by deteriorating expectations among IT service providers.
Analysts linked the downturn to uncertainty surrounding potential European Union retaliation against U.S. digital firms, following Washington’s proposed tariffs.