German business morale rises unexpectedly in June

German business sentiment rose for the first time in four months in June, bucking expectations for a drop and showing the economy still growing strongly in comparison with struggling European peers.
The Munich-based Ifo think tank said its business climate index, based on a monthly survey of some 7,000 firms, rose to 114.5 in June from an originally reported 114.2 in May and compared with expectations for a drop to 113.5.
None of the 37 economists polled by Reuters last week had expected a rise in Ifo's leading indicator.
"Although their business expectations are again somewhat less optimistic, the firms remain confident," Ifo President Hans-Werner Sinn said in a statement. "The German economy is experiencing a robust upswing."
The euro jumped broadly after the release of the data.
However, a subindex on expectations dropped to 106.3 from 107.4 last month, signalling that the momentum is set to dampen in months ahead. A subindex on current conditions rose to 123.3 from 121.5 in May.

"June's rise in the German Ifo defies other recent evidence that the economy's impressive recovery is slowing," said Ben May, an economist at Capital Economics. "Nonetheless, we still think GDP growth will weaken over the remainder of the year."
The strong reading of the climate index contrasted with recent data suggesting most investors now expect the euro zone's largest economy to slow over the next six months. The bloc's worsening sovereign debt crisis — and drawn out rescue of Greece — are also clouding the outlook.
EU leaders on Thursday promised more money to help Greece stave off looming bankruptcy, providing its parliament enacts an austerity plan finalised in fraught last-minute talks with international lenders.
Highlighting the risk of contagion, the IMF's acting chief John Lipsky said on Tuesday the euro zone's partners were concerned about the potential for the crisis in the bloc's peripheral economies to spread to its core.