ifo: Business Climate Index Increased in February

Sentiment among companies in Germany has improved. The ifo Business Climate Index rose in February to 88.6 points, up from 87.6 points in January. Companies were more satisfied with their current business situation. Expectations also developed positively. The German economy is showing first signs of recovery.

In manufacturing, the index increased once again. This was driven by considerably better assessments of the current business situation. Although expectations declined, the order situation developed positively, and there was an upward correction in production planning.

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In the service sector, the business climate improved, expectations in particular rose. Service providers were also more satisfied with the current business situation. The business climate indicator in the logistics sector improved considerably.

In trade, the index declined a little with companies assessing their current situation as slightly worse. However, the outlook for the coming months was corrected upward marginally. While trends in the wholesale segment improved slightly, sentiment among retailers declined significantly.

In construction, the business climate continued to improve. Assessments of the current situation were more positive, with the same also being true for expectations. However, the order situation is only recovering slowly.

More information: www.ifo.de

ifo Institut für Wirtschaftsforschung e.V., München