Germany’s Ifo Business Climate Index rose to 84.9 in May 2026, up from April’s six-year low of 84.5 and slightly above the forecast of 84.2. However, the index remained weak, highlighting growing concerns about the Middle East conflict’s impact on Germany’s fragile economic recovery. Companies’ assessment of current conditions improved to 86.1 from 85.4, while expectations for the future inched up to 83.8 from 83.5.