ifo Business Climate Index Rises (February 2023)
Sentiment has improved among German business leaders. The ifo Business Climate Index rose to 91.1 points in February, up from 90.1 points in January. Expectations in particular were brighter. However, assessments of the current situation were slightly less good. The German economy is gradually working its way out of a period of weakness.
In manufacturing, the index rose to its highest level since May 2022. This was due to companies’ notably improved expectations. Manufacturers assessed their current business as a little worse. They received fewer new orders.
In the service sector, the business climate improved for the fifth consecutive month. Service providers were somewhat more satisfied with their current business situation. Moreover, their confidence regarding the coming months continued to grow. Sentiment improved particularly strongly in hospitality and tourism.
In trade, the index rose once again. Expectations in particular were less skeptical. Businesses were also more satisfied with their current situation. Wholesalers and retailers are getting over last year’s collapse in sentiment.
In construction, the business climate improved a little. Companies were more satisfied with their current business situation. However, their expectations are still marked by significant pessimism.
Clemens Fuest
President ifo Institute
Survey
ifo Business Climate Index Rises (February 2023)
Sentiment has improved among German business leaders. The ifo Business Climate Index rose to 91.1 points in February, up from 90.1 points in January. Expectations in particular were brighter. However, assessments of the current situation were slightly less good. The German economy is gradually working its way out of a period of weakness.
