Germany's business climate index recovers in May: ifo Institute

Business Tuesday 26/May/2020 17:13 PM
By: Times News Service
Germany's business climate index recovers in May: ifo Institute

Berlin: Germany's business climate index recovered in May, rising to 79.5 points from 74.2 points in April, the German ifo Institute announced.
"Sentiment among German companies has recovered somewhat after a catastrophic few months," stated the ifo Institute.
Although companies once again assessed their current situation as "slightly worse," their expectations for the coming months have "improved considerably."
The monthly index reflects the economic sentiment of around 9,000 German company executives. Surveyed companies are assessing their current business situation as well as their expectations for the next six months.
The index for Germany's manufacturing sector "rose appreciably," according to ifo. While the assessment of the current situation continued to deteriorate, the overall increase was "due only to companies' much-improved expectations."
The business climate in the service sector "recovered notably" from its record low in April, which also had been "primarily the result of a strong rise in expectations."
Trade also saw a "tangible recovery both in companies' assessments of the current situation and in their expectations." The business climate index for this sector rose "substantially."
According to the ifo Institute, the easing of the lockdown, implemented in Germany to slow down the spread of the coronavirus, was "improving sentiment among retailers in particular."
After declining for seven consecutive months, the index for Germany's construction sector rose due to an "unprecedented improvement in expectations." However, construction companies assessed their current situation as "somewhat worse," the ifo Institute noted.
Despite the general rise of the business climate index comprising all sectors, many German companies were still pessimistic about their business. However, according to the ifo Institute, "the gradual easing of the lockdown offers a glimmer of hope."