German Business Confidence Index Rises for Second Month

German business confidence rose for a second consecutive month in June, according to a survey released Wednesday. The headline index reached 85.6 points, above the 85.5 market estimate and the prior month's revised 85.0 reading. Officials said companies viewed the business environment as less uncertain and expressed hope that geopolitical tensions would ease.

The survey covered manufacturing, services, trade, and construction.

The expectations component for the next six months rose to 84.1 points, below the 84.8 forecast but above May's revised 83.9. The current conditions measure climbed to 87.0 points, exceeding both the 86.3 estimate and the previous month's 86.1.

A separate investor outlook survey also improved more than expected. Purchasing managers reported an 18-month low in the composite index at 48.0 points, with most responses collected before last week's U.S.-Iran memorandum of understanding. The European Central Bank raised rates nearly two weeks earlier, citing war-driven price pressures.

Economists had lowered Germany's 2027 growth forecast to 0.8 percent from 1.2 percent.