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flag German business climate index improves, showing better expectations despite a private sector contraction.

flag The German Ifo Business Climate Index rose to 87.5 in May, showing improved business expectations despite a slight dip in the current situation index to 86.1. flag The purchasing managers' index (PMI) indicated the private sector shrank for the first time this year, mainly due to a downturn in the service sector, although manufacturing continued to grow. flag These mixed signals suggest a gradual economic improvement in Germany.

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