The mood among German companies has recently eased somewhat. The Ifo business climate index rose to 88.6 points in February, up from 87.6 points in January, according to a Monday announcement by the Ifo Institute. Analysts had expected a slightly weaker increase.
Overall, firms are more satisfied with their ongoing operations and their expectations have brightened. The institute said the German economy shows early signs of a stimulus.
“Manufacturing”: The index climbed again, driven by noticeably better assessments of the current business condition. Although expectations dipped a touch, new orders were positive and production plans were revised upward.
“Services”: Business sentiment improved, especially expectations. Service providers reported greater satisfaction with their current operations, and the logistics indicator posted a strong rise.
“Trade”: The index slipped a little. Companies judged their present position somewhat less favorably, yet the outlook for the coming months was slightly nudged upward. Wholesale sector showed mild upturns, while retail sentiment noticeably softened.
“Construction”: The business climate continued its rebound. Judgements of the present situation and of expectations were more favourable, though the order book is improving only slowly.
