Germany July Ifo business climate index 86.6 vs 86.0 expected

Germany’s July Ifo business climate index improved to 86.6, beating the 86.0 consensus and rising from 85.6 previously. The current conditions component was softer than expected at 86.5 versus 87.3 forecast, while the expectations/outlook gauge strengthened to 86.7 from 84.1 and exceeded the 84.8 estimate. The report is modestly positive for German growth sentiment and may provide some support to European risk assets and the euro, though the weaker current-conditions reading tempers the upbeat surprise. Overall, the data suggests sentiment is improving more quickly than present business activity.