Sentiment in the German economy has brightened. The ifo Business Climate Index rose to 93.0 points in May, up from 91.9 points (seasonally adjusted) in April. Above all, companies were noticeably more satisfied with current business. Expectations, on the other hand, hardly changed, with companies remaining skeptical. The German economy is proving robust despite inflation concerns, material bottlenecks and the war in Ukraine. There are currently no signs of a recession.