Business: Ifo business climate brightens – pessimism remains

Business: Ifo business climate brightens – pessimism remains

Economy
Ifo business climate brightens – pessimism remains






German companies look even more pessimistic about future business. It seems only a weak consolation that the current location is seen a little cheaper.

The mood in the German economy improved somewhat at the beginning of the year thanks to a better assessment of the current situation. In January, the IFO business climate rose by 0.4 points to 85.1 points, as the IFO Institute announced on Monday in Munich. This is the first increase after two setbacks in a row. Economists had expected less than changed 84.8 points. However, the approximately 9,000 companies surveyed by the IFO Institute look even more pessimistic to the future: the index value for expectations of future business continued to fall.

The current business situation, on the other hand, was better assessed in January. Here the corresponding sub -indicator rose by 1.0 points to 86.1 points and thus expected significantly more than analysts.

“The increase was primarily the result of a cheaper assessment of the current situation,” IFO President Clemens Fuest commented on the overall data.

Mood in the services sector better

The IFO survey showed significant differences in the individual areas of the German economy. In the industrial drives, the mood deteriorated again due to the growing skepticism of companies with a view to future business. In contrast, the mood in the company in the field of services at the beginning of the year improved.

“The German economy remains pessimistic,” summarizes IFO boss Fuest the result of the survey. According to Ulrich Kater, chief economist at Dekabank, there is still no trace of the spirit of optimism in the German economy. “According to these figures, the German economy remains stagnated in the first half of the year,” commented Kater.

dpa

Source: Stern

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