Germany Ifo Climbs to 84.9, Reviving Germany 40 Outlook After Mixed Data

Germany’s Ifo business climate index rose to 84.9 on 22 May, beating the 84.2 consensus and adding modest positive momentum for the Germany 40 after mixed signals. The sequence began with an April PPI beat of +1.2% on 20 May, followed by a disappointing flash manufacturing PMI drop to 49.9 on 21 May that pressured the DAX lower. On 22 May the final Q1 GDP print held at +0.3% quarter-on-quarter while the GfK consumer climate rebounded to -29.8, and the Ifo improvement reinforced a cautiously optimistic tone for German equities amid still-soft industrial data.