UPDATE 1-German Ifo business sentiment unexpectedly rises

"Following the slump in March and April, business sentiment in Germany has recovered slightly," Ifo President Clemens Fuest said. 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.

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. "Following the slump in March and April, business sentiment in Germany has recovered slightly," Ifo President Clemens Fuest said.

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.

"The German economy is stabilising for the time ⁠being, ​but the situation remains fragile," Fuest said. Businesses were slightly more satisfied with their current operations, with the index rising ⁠to 86.1 from 85.4 in April.

The outlook for the coming ⁠months was ⁠also less pessimistic, Ifo said, with the corresponding index rising to 83.8 from 83.5 in the ‌previous month.