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Germany’s very, very modest economic improvement continued. However, the pace is slow enough that continued problems among other European Union nations could still drag it under. And those problems do continue, based on recent purchasing managers index (PMI) and unemployment results. The German Ifo Business Climate Index posted 105.9 in June, barely up from 105.7 in May. However, the number was down from 107.4 in February.

The organization reported on the business climate in Germany:

The Ifo Business Climate Index for industry and trade in Germany continued to rise. Although assessments of the current business situation are slightly less positive, firms are increasingly optimistic with regard to their future business outlook. The German economy holds its course.

The business climate indicator in manufacturing continued last month’s increase. Manufacturers are once again slightly more satisfied with their current business situation. They are also clearly more optimistic about future business developments. Export expectations in particular have increased sharply.

In wholesaling, the business climate index fell. Wholesalers are far less satisfied with their current business situation and more sceptical about their business outlook. The business climate also cooled down slightly in retailing. Retailers are no longer quite as satisfied with their current business situation as last month. Their business outlook, however, continued to brighten.

In construction the business climate index edged downwards. Although contractors report a slight improvement in their current business situation, they are somewhat less optimistic about future business developments.