March 29, 2023
ifo Business Climate Index in Germany Rises (March 2023)
Sentiment in German business has improved. The ifo Business Climate Index rose to 93.3 points in March, up from 91.1 points in February. This is its fifth consecutive rise. This upward development was driven primarily by business expectations; companies also assessed their current business as somewhat better. Despite turbulence at some international banks, the German economy is stabilizing.
In manufacturing, the index rose substantially. Companies were notably more satisfied with their current business situation. Moreover, pessimism almost completely disappeared from their expectations. Sentiment improved considerably, especially in key areas of manufacturing such as the automotive, chemical, electrical and electronics, and machinery and equipment industries.
In the service sector, the business climate continued its upswing. Current business developed much more satisfactorily. The expectations index rose to its highest value since February 2022. More service providers are expecting sales revenue to increase.
In trade, the index rose slightly. The recovery of recent months lost momentum. The indices for current business and expectations both climbed a little. However, there was almost no movement in retail, where companies are still pessimistic about the months ahead.
In construction, the business climate improved. This was due to less pessimistic expectations. Construction companies assessed their current business as somewhat worse.
Source: ifo
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
