ifo: Business Climate Rises in August

Sentiment among companies in Germany has increased. The ifo Business Climate Index rose to 88.8 points in August, up from 86.7 in July. Companies were more satisfied with their current situation, and they revised their expectations significantly upward. Uncertainty continued to decline. Despite another rise in energy prices, the German economy is recovering.

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In manufacturing, the index rose noticeably. Managers assessed their current business conditions as significantly better. Expectations were also marked by less skepticism. Companies expect production to increase over the next three months. However, they remain dissatisfied with their order situation.

In the service sector, the business climate improved. Expectations continued to brighten. Companies viewed their current business situation as more favorable. While IT service providers were more confident about their future development, the situation in the transportation and logistics sector remains difficult.

In trade, the indicator rose. Retailers expressed greater satisfaction with current business conditions. Expectations also continued their upward trend. In wholesale, in particular, business sentiment improved significantly.

In construction, the index increased. This was due to noticeably less pessimistic expectations. However, companies assessed their current situation as slightly worse.

More information: www.ifo.de

ifo Institut für Wirtschaftsforschung e.V., München