German business confidence remained unchanged in May at a high level as the
robust economy recovery continued.
The Ifo institute at the University of Munich said
its business climate index, based on a survey of 7,000 executives, held at 114.2
Ifo said the previously good business situation
has again been given a better assessment. The six-month business outlook is once
more somewhat dampened but remains positive. The business cycle traffic lights
still signal “green”.
In manufacturing the business climate index has
fallen slightly for the third time in succession. As in the previous month, the
decline is the result of the firms’ somewhat less optimistic business
expectations. The industrial firms still assess the current business situation
as very good. They also continue to see great opportunities from export
business. Firms plan to clearly increase staff levels although not at the pace
of the past month.
In retailing the business climate index has risen
markedly. The business situation of the retailers has clearly improved. With
regard to business in the coming half year, the firms are more confident than in
the previous month. In contrast, the business situation in wholesaling has again
clouded somewhat. The wholesalers have assessed their business situation as no
longer as favourable as before. Their business expectations, however, are
slightly more positive than in April.
In the construction sector, the business climate
is largely unchanged. The firms have assessed both their current business as
well as the business outlook just as favourably as in April.
Ifo Business Climate Indicator in the Service Sector Falls
The Ifo Business Climate in the German service sector clouded
somewhat in May. The service providers have assessed both their current business
situation as well as the business outlook somewhat less positively in comparison
to April. Most firms, however, plan to maintain their expansive personnel
The Ifo Business Survey in the Services is based on ca. 2.500
monthly survey responses of firms in important. especially business-oriented
segments of the tertiary sector (excl. distribution. financial services.
leasing. insurance and government).