Business sentiment among companies in Germany has recently improved. The Ifo Business Climate Index rose in September to 89.9 points, up from 88.8 in August. This indicates that companies assessed their current business situation more positively, and their expectations continued to brighten.
In the manufacturing sector, the index climbed again, largely attributed to significantly better expectations, particularly within the electrical industry. However, companies rated their current situation somewhat lower, remaining dissatisfied with the volume of orders. Additionally, the automotive industry is facing challenging conditions.
In the services sector, the business climate shifted back into positive territory. Companies expressed greater satisfaction with their ongoing operations and adjusted their expectations upwards.
The indicator also rose in the retail trade sector. Retailers rated their current situation more positively, and their expectations climbed as well. Despite rising inflation, however, retailers remain cautious.
The index for the construction main trade remained nearly unchanged. On the one hand, companies were slightly more satisfied with their current business, but on the other hand, their expectations slightly declined. Underground construction continues to perform better than high-rise construction.
