ifo Media Center
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ifo Business Climate Saxony: Climate Brightens Considerably (April 2024)
The ifo Business Climate in Saxony brightened considerably in April. The barometer of business sentiment in Saxony’s economy leapt from 91.8 to 95.5 points. The companies surveyed raised their assessments of the business situation enormously. Their business expectations also improved substantially compared to the previous month. Business in Saxony is much better again.
Sentiment in the German Automotive Industry Improves
The business climate in Germany’s automotive industry brightened again in April. The index rose to -1.5 points, up from -5.3 points* in March. “Companies in Germany’s automotive industry rate their current business situation as slightly better, but more importantly, their outlook once again turned much less pessimistic than in March,” says Anita Wölfl, a specialist at the ifo Center for Industrial Organization and New Technologies.
ifo Business Climate Eastern Germany Rises a Second Time in a Row (April 2024)
The ifo Business Climate Index Eastern Germany rose considerably in April. The barometer of business sentiment for the regional economy in eastern Germany climbed to 92.3 points, up from 90.2 points in March. The eastern German companies surveyed provided assessments of their business situation that were somewhat better than the previous month, and they raised their business expectations substantially. The Business Climate Index has now risen for the second time in succession. Signs indicate an upward trend.
Business Climate in German Retail Improves Again
The ifo Business Climate in retail brightened further in April. The index rose to -14.5 points, up from -17.5 points in March. Assessments of the current business situation improved significantly. Retailers’ business expectations also became somewhat more optimistic, but remain largely cautious. “Consumer-related businesses are likely to support the overall economy in 2024,” says ifo expert Patrick Höppner.
ifo Price Expectations Rise Slightly
In Germany, slightly more companies than in the previous month intend to raise their prices in April. The ifo price expectations rose a little to 15.1 points in April, up from 14.3 points in March. “Inflation is unlikely to fall any further in the coming months and is set to remain at just over 2%,” says Sascha Möhrle, economic expert at the ifo Institute.
ifo Employment Barometer Falls (April 2024)
Companies in Germany are proving more cautious in their personnel planning. The ifo Employment Barometer slipped to 96.0 points in April, down from 96.3 points in March. “A lack of orders is causing some companies to put the brakes on hiring,” says Klaus Wohlrabe, Head of Surveys at ifo. “But service providers in some industries, such as data processing and tourism, are taking people on.”
German Export Expectations Fall (April 2024)
Sentiment in the German export industry has clouded over a little. The ifo Export Expectations fell to -2.0 points in April, down from -1.2 points in March. “The mood is somewhat subdued,” says Klaus Wohlrabe, Head of Surveys at ifo. “The export economy lacks momentum at present. While the global economy offers many good prospects for growth, these aren’t yet being reflected in additional orders.”
ifo Business Climate Index Rises (April 2024)
Sentiment has improved at companies in Germany. The ifo Business Climate Index rose to 89.4 points in April, up from 87.9 points1 in March. This is its third consecutive rise. Companies were more satisfied with their current business. Their expectations also brightened. The economy is stabilizing, especially thanks to service providers.
Equal Opportunities in the Labor Market as Part of the HR Strategy to Combat Labor and Skills Shortages (1st Quarter 2024)
In the first quarter of 2024, the Randstad-ifo HR manager survey focused on equal opportunities in the labor market, especially in light of the shortage of workers and applicants. The tools most frequently used by companies for equal opportunities are the flexibilization of working hours and of hours worked. In addition, three-quarters of the companies surveyed have changed the structure of their job advertisements and application processes in the last five years – one reason being to receive more applications.
Economic Experts Survey: Further Decline in Inflation Expected in the Short Term (1st Quarter 2024)
How are economists’ expectations for future price developments evolving worldwide? Can we observe a decline in inflation expectations? The latest wave of the Economic Expert Survey (EES) by the ifo Institute and the Institute for Swiss Economic Policy examines economists’ inflation expectations at a global level. The result: although inflation expectations worldwide remain well above central banks’ inflation target, there is a further decline in the expected inflation rate for 2024 compared to previous quarters. However, long-term inflation expectations show a stagnating or rising trend.
German Companies Plan to Cut Investment in 2024
Companies in Germany have revised their investment plans for the current year downward. The ifo investment expectations fell to -0.1 points in March, down from +1.2 points in November. “Global demand for capital goods and intermediate goods remains weak and uncertainties persist regarding economic policy. As a result, many companies are postponing their investment decisions,” says Lara Zarges, economic expert at the ifo Institute.
Uncertainty Dampens the Mood of the Self-Employed in Germany
Uncertainty among the self-employed in Germany has increased. As a result, the business climate for this segment has deteriorated, according to the latest ifo survey in March (“Jimdo-ifo Business Climate Index for the Self-Employed”). The index fell to -15.6 points*, down from -14.6 points* in February. “Contrary to the situation in the other sectors of the economy, the self-employed are experiencing increasing doubt,” says ifo expert Katrin Demmelhuber.
Business Climate in the German Chemical Industry Brightens
The business climate in Germany’s chemical industry improved in March. The index rose to -10.5 points, up from -15.5 points* in February. Business expectations improved sharply, with the indicator climbing to -2.9 points, up from -14.9 points in February. “Although the order situation in the chemical industry still leaves a lot to be desired, companies seem to have weathered the worst of the crisis,” says industry expert Anna Wolf from the ifo Institute.
Availability of Materials in Germany Approaching Pre-coronavirus Levels
German manufacturers hardly have to struggle with material shortages anymore. In March, 10.2% of the companies surveyed reported shortages, down from 14.6% in February. “The supply of raw materials and intermediate products has recently seen significant improvement,” says Klaus Wohlrabe, Head of Surveys at ifo. “The situation is now almost back to how it was before the coronavirus crisis.”
One in Five Residential Construction Companies in Germany Reports Cancellations
Cancellations in German residential construction have increased. Just under one in five companies (19.6%) reported canceled orders. In February, the figure was 17.7%. “The situation in residential construction remains tense,” says Klaus Wohlrabe, Head of Surveys at ifo. “There aren’t enough new orders to offset the cancellations.”
Business Climate in the German Automotive Industry on the Upswing
The business climate in Germany’s automotive industry brightened in March. The indicator rose to -5.8 points, up from -9.9 points* in February. “The German automotive industry seems to have finally emerged from its economic low in the second half of 2023 and is looking to the future with more confidence,” says Anita Wölfl, a specialist at the ifo Center for Industrial Organization and New Technologies.
ifo Business Climate Saxony: Climate Warms Slightly (March 2024)
Not only did March bring a gradual rise in outdoor temperatures, but it also warmed up the business climate in Saxony. The barometer of business sentiment in Saxony’s economy rose from 90.2 to 91.6 points. The companies surveyed raised their assessments of the business situation significantly and their business expectations slightly compared to February.
Inflation Continues to Decline in Germany
ifo price expectations in Germany fell to 14.3 points in March, down from 15.0 points in February. This is their lowest level since March 2021. “Inflation is still on the decline and should fall below 2% this summer. From a German perspective, there’s no reason why the ECB shouldn’t cut interest rates soon,” says Timo Wollmershäuser, Head of Forecasts at ifo.
Business Climate in German Retail Improves Markedly Before Easter
The ifo Business Climate in retail brightened noticeably in March. The indicator for assessments of the current business situation rose to -7.3 points, up from -18.1 points* in February. There was a clear improvement in business expectations, too. “The pessimism that has been such a feature of recent times is receding. Business in the run-up to Easter has apparently brought a ray of hope for many retailers,” says ifo expert Patrick Höppner.
ifo Business Climate Eastern Germany Blossoms with the Start of Spring (March 2024)
The ifo Business Climate Index Eastern Germany rose considerably in March. The barometer of business sentiment for the regional economy in eastern Germany climbed to 90.0 points, up from 88.6 points in February. The eastern German companies surveyed provided assessments of their business situation that were somewhat better than the previous month, and they also raised their business expectations slightly.