ifo Business Climate Index Rises (September 2020)
Sentiment among German managers has further improved: the ifo Business Climate Index climbed to 93.4 points in September, after 92.5 points in August. The companies once again assessed their current situation as better than in the previous month. They also expect their business to recover further. The German economy is stabilizing despite rising infection numbers.
In manufacturing, the Business Climate Index saw a noticeable increase. Significantly fewer companies assessed their current business situation as difficult. At the same time, more industrial companies expected that their business situation will improve further in the near future. The electrical and electronics industries in particular are optimistic.
In the service sector, by contrast, the index fell after rising four times in a row. This is due to less optimistic expectations. The companies deemed their current situation to be marginally better, however.
In trade, the business climate brightened significantly. Companies were considerably more satisfied with their current business situation, and many of them assume it will improve further over the next few months.
In construction, the index rose again. The indicator for the current situation climbed to its highest value since March of this year. Although the outlook remains pessimistic, it is somewhat less so than in August.
