ifo Business Climate Index Rises (March 2023)
Sentiment in German business has improved. The ifo Business Climate Index rose to 93.3 points in March, up from 91.1 points in February. This is its fifth consecutive rise. This upward development was driven primarily by business expectations; companies also assessed their current business as somewhat better. Despite turbulence at some international banks, the German economy is stabilizing.
In manufacturing, the index rose substantially. Companies were notably more satisfied with their current business situation. Moreover, pessimism almost completely disappeared from their expectations. Sentiment improved considerably, especially in key areas of manufacturing such as the automotive, chemical, electrical and electronics, and machinery and equipment industries.
In the service sector, the business climate continued its upswing. Current business developed much more satisfactorily. The expectations index rose to its highest value since February 2022. More service providers are expecting sales revenue to increase.
In trade, the index rose slightly. The recovery of recent months lost momentum. The indices for current business and expectations both climbed a little. However, there was almost no movement in retail, where companies are still pessimistic about the months ahead.
In construction, the business climate improved. This was due to less pessimistic expectations. Construction companies assessed their current business as somewhat worse.
Clemens Fuest
President of the ifo Institute
Survey
ifo Business Climate Index Rises (March 2023)
Sentiment in German business has improved. The ifo Business Climate Index rose to 93.3 points in March, up from 91.1 points in February. This is its fifth consecutive rise. This upward development was driven primarily by business expectations; companies also assessed their current business as somewhat better. Despite turbulence at some international banks, the German economy is stabilizing.
