The KfW-ifo SME Barometer rose by 4 points to -17.3 balance points, mainly due to stronger business expectations and improved assessments of current conditions. According to the latest KfW-ifo SME Barometer, the SME business sentiment indicator rose by 4 points to -17.3 balance points. Despite the July increase, SME sentiment remains well below its long-term average. The easing of bureaucratic burdens and the temporary de-escalation of the Iran war also appear to have contributed to improved expectations. The latest barometer indicates that while confidence among German SMEs has improved, the broader economic environment remains vulnerable and business sentiment has not yet returned to normal long-term levels.