German Ifo business sentiment unexpectedly rises

​German business ​morale unexpectedly rose ‌in May, ​a survey showed on Friday, ‌offering a glimmer of hope for Europe's largest economy. The Ifo institute ‌said its business climate index ‌increased to 84.9 compared to a revised 84.5 in April.

Analysts polled ⁠by ​Reuters ⁠had forecast a decrease to 84.2. Germany's ⁠economy has struggled to regain ​momentum since the pandemic, as rising ⁠competition from China and higher energy prices ⁠have ​strained its export-driven model.

The surge in energy prices ⁠triggered by the war in ⁠Iran poses ⁠a further threat to its long-awaited recovery.