ifo Business Climate Index rises (March 2024)
Sentiment in German companies has improved noticeably. The ifo Business Climate Index rose to 87.8 points in March, up from 85.7 points in February. In particular, companies’ expectations turned much less pessimistic. Assessments of the current business situation also improved. The German economy glimpses light on the horizon.
In manufacturing, the business climate improved markedly. Companies were considerably more satisfied with their current business. Moreover, the expectations index jumped higher. But companies are still a way away from optimism. Order books continued to shrink.
In the service sector, the Business Climate Index rose tangibly. This was driven in particular by less pessimistic expectations. Service providers also assessed their current situation as a little better. Business was decidedly better in transport and logistics and in hospitality.
The index rose in trade as well. Trading companies were more satisfied with their current business situation. Their expectations were also less pessimistic. Retailers in particular are seeing a ray of hope.
In construction, the Business Climate Index rose. Assessments of the current situation were somewhat better. Following last month’s all-time low, expectations were a little higher but remain bleak.
Clemens Fuest
Präsident des ifo Instituts
Survey
ifo Business Climate Index rises (March 2024)
Sentiment in German companies has improved noticeably. The ifo Business Climate Index rose to 87.8 points in March, up from 85.7 points in February. In particular, companies’ expectations turned much less pessimistic. Assessments of the current business situation also improved. The German economy glimpses light on the horizon.
