Germany’s Ifo Business Climate Index rose to 88.8 in August from a revised 87.2 in July, beating analyst forecasts of 87.2 and pointing to a modest improvement in company sentiment. The gain was driven by a notable rise in expectations, while assessments of current conditions were broadly unchanged. Economists said the improvement was broad-based, with services and trade stronger and construction slightly better, though manufacturing remained subdued amid high costs and weak demand. As the eurozone’s largest economy, Germany’s firmer reading offered some relief after weak industrial output and slower export orders, suggesting stabilization rather than a robust recovery. Markets reacted positively, with the euro edging higher and German bond yields rising slightly as expectations of an imminent European Central Bank rate cut eased ahead of the September meeting, even as industrial weakness could still support cautious easing.