Source: Sharecast
The business climate index ticked up to 87.5 from 86.9 the month before, while the expectations index rose to 88.9 from 87.4.
The current situation index printed at 86.1 in May versus 86.4 in April.
The manufacturing index was -13.8, up from -18.0 in April, while the gauge for the construction sector improved to -18.5 from -21.9.
The service sector index rose to -0.4 in May from -0.8 the month before and the manufacturing index came in at -13.8 from -18.0.
Ifo Institute president Clemens Fuest said: " The recent sharp rise in uncertainty among companies has eased somewhat. The German economy is slowly regaining its footing."
ING said: "After the back-and-forth on US tariffs, German businesses seem to be focusing on the bright side of what could happen under the new German government, rather than fearing the downsides from ongoing uncertainty and trade tensions.
"This is, at least, the message that the just-released Ifo index seems to convey."