Berlin: Germany's Ifo Business Climate Index increased to 88.4 points in June, marking the sixth consecutive month of growth. This rise is attributed to interest rate cuts and a significant fiscal package from the government, which have bolstered companies' optimism about their future business prospects.

According to Anadolu Agency, the Ifo Institute for Economic Research released the results of its June Business Climate Index survey on Tuesday. The survey, which included approximately 9,000 companies, revealed that the index for industry and trade increased from 87.5 in May to 88.4 in June. This surpassed market expectations, which anticipated an increase to 88.2 points.

The Ifo Expectations Index also saw growth, rising from 89 to 90.7 points, while the Current Situation Index slightly increased from 86.1 to 86.2. The institute noted that German companies are showing improved confidence, particularly in their expectations for the future.

The Ifo Institute highlighted that confidence in the manufacturing sector has experienced a marginal recovery, although companies remain concerned about their order books. Additionally, the index indicated a strong recovery in the service sector and continued confidence improvement in the construction sector.