By Maria Martinez
BERLIN, July 27 (Reuters) – German business morale grew more than expected in July thanks to significantly improved expectations, a survey showed on Monday.
The Ifo institute said its business climate index rose to 86.6 from a slightly upwardly revised 85.7 in June.
Analysts polled by Reuters had forecast an increase to 86.0.
“Despite the uncertain situation in the Persian Gulf, the German economy is showing less pessimism,” Ifo’s president Clemens Fuest said.
Economic expectations rose to 86.7 in July from 84.3 in June, posting a strong increase.
However, companies were slightly less satisfied with their current business performance, with the index falling to 86.5 in July from 87.0 in the previous month.
Business sentiment improved across all economic sectors, the survey showed.
(Reporting by Miranda Murray, Editing by Linda Pasquini)
