ifo Business Climate Recovers Slightly (September 2019)
Sentiment among German executives has improved slightly. The ifo Business Climate Index rose in September from 94.3 to 94.6 points. This increase was due to a better assessment of the current situation. However, the outlook for the coming months deteriorated again. The downturn is taking a breather.
In manufacturing, the business climate has only one direction: downward. Companies were once again less satisfied with their ongoing business, and their expectations for the coming months remained pessimistic. The current demand development and production plans offer no promise of improvement in the coming months.
In services, the business climate has seen a marked recovery following the previous month’s decline. Service providers were substantially more satisfied with their current business situation, and the outlook for the next half of the year brightened again.
The business climate in trade took another slide. Traders viewed their current situation as somewhat less good and also expect their business to decline further in the next few months.
In construction, the Business Climate Indicator rose, thanks to more optimistic expectations. The construction companies still assessed their situation as excellent, but less so than in the previous month.
Prof. Dr. Dr. h.c. Clemens Fuest
President
