Dr. Klaus Wohlrabe

Constantin Bürgi und Klaus Wohlrabe

Klaus Wohlrabe

Werner Hölzl und Klaus Wohlrabe

Companies in Germany are proving more cautious in their personnel planning. The ifo Employment Barometer slipped to 96.0 points in April, down from 96.3 points in March. “A lack of orders is causing some companies to put the brakes on hiring,” says Klaus Wohlrabe, Head of Surveys at ifo. “But service providers in some industries, such as data processing and tourism, are taking people on.”

Sentiment in the German export industry has clouded over a little. The ifo Export Expectations fell to -2.0 points in April, down from -1.2 points in March. “The mood is somewhat subdued,” says Klaus Wohlrabe, Head of Surveys at ifo. “The export economy lacks momentum at present. While the global economy offers many good prospects for growth, these aren’t yet being reflected in additional orders.”

Munich, April 24, 2024 – Sentiment has improved at companies in Germany. The ifo Business Climate Index rose to 89.4 points in April, up from 87.9 points1 in March. This is its third consecutive rise. Companies were more satisfied with their current business. Their expectations also brightened. The economy is stabilizing, especially thanks to service providers.

Le moral des dirigeants d’entreprise allemands s’est amélioré. En avril, l’indice ifo du climat des affaires est passé à 89,4 points, contre 87,9 points[1] au mois de mars. Il s’agit de la troisième amélioration consécutive. Les entreprises se déclarent plus satisfaites de la marche de leurs activités et se montrent plus optimistes pour l’avenir. La conjoncture se stabilise, notamment grâce au secteur des services.

German manufacturers hardly have to struggle with material shortages anymore. In March, 10.2% of the companies surveyed reported shortages, down from 14.6% in February. “The supply of raw materials and intermediate products has recently seen significant improvement,” says Klaus Wohlrabe, Head of Surveys at ifo. “The situation is now almost back to how it was before the coronavirus crisis.”

Cancellations in German residential construction have increased. Just under one in five companies (19.6%) reported canceled orders. In February, the figure was 17.7%. “The situation in residential construction remains tense,” says Klaus Wohlrabe, Head of Surveys at ifo. “There aren’t enough new orders to offset the cancellations.”

Companies in Germany are again looking to hire more staff. The ifo Employment Barometer rose to 96.3 points in March, up from 94.9 points in February. “Companies are currently more willing to hire because they are better able to assess the economic conditions. Skilled workers continue to be in demand,” says Klaus Wohlrabe, Head of Surveys at ifo.

Sentiment in the German export industry is markedly brighter. The ifo Export Expectations rose to -1.4 points in March, up from -7.0 points in February. “World trade ought to pick up in the months ahead,” says Klaus Wohlrabe, Head of Surveys at ifo, “and German exporters hope to benefit from this.”

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.

Le moral des entreprises s'est nettement amélioré, comme le montre la progression de l'indice ifo du climat des affaires, de 85,7 points en février à 87,8 points[1] en mars. Les prévisions des entreprises s'avèrent beaucoup moins pessimistes. L'évaluation de la situation actuelle affiche elle aussi une amélioration. Une lueur d'espoir se profile à l’horizon pour l’économie allemande.

The shortage of skilled workers among companies in Germany has eased somewhat. According to the survey, 36.3% of firms are currently suffering from a shortage of qualified workers, down from 38.7% in October 2023. A year ago, it was 43.6%. “The weakening economy is reducing demand for skilled workers in the short term,” says ifo expert Klaus Wohlrabe, “but the fundamental problem is here to stay.”

The ifo Business Climate in residential construction has reached a new low. It fell to -61.9 points in February, down from -60.7 points in January. More than half of the construction companies surveyed are dissatisfied with the current situation. Expectations are also stuck at rock bottom. “At present there isn’t a single ray of hope on the horizon for residential construction,” says Klaus Wohlrabe, Head of Surveys at ifo. “Orders continue to be canceled. At the same time, building permits for apartments are in free fall.”

Material shortages in German manufacturing have become slightly worse. In February, 14.6% of the companies surveyed reported shortages, up from 12.5% in January. These are findings from the ifo Institute’s latest survey. “In addition to the ongoing conflict in the Red Sea, the rail strike in Germany has also led to a shortage of raw materials and intermediate products at some companies,” says Klaus Wohlrabe, Head of Surveys at ifo. “Nevertheless, the supply bottlenecks are not a fundamental problem for industrial production. At present, we’re mainly seeing delays within supply chains, not a total breakdown.”

Companies in Germany are looking to hire less staff. In February, the ifo Employment Barometer fell to 94.9 points, down from 95.5 points in January. “With the economy so sluggish, companies are putting off hiring new people,” says Klaus Wohlrabe, Head of Surveys at ifo. “Even layoffs can no longer be ruled out.”

Sentiment in the German export industry has brightened somewhat. The ifo Export Expectations rose to -7.0 points in February, up from -8.5 points in January. “The German export economy is hardly benefiting at all from current global economic developments,” says Klaus Wohlrabe, Head of Surveys at ifo. “There’s still a lot of room for improvement.”

Le moral des dirigeants allemands s’est légèrement amélioré, l’indice ifo du climat des affaires étant passé à 85,5 points, contre 85,2 points en janvier. Cette embellie est due à des attentes un peu moins pessimistes alors que l’évaluation de la situation actuelle reste inchangée. Dans ce domaine, le nombre de réponses positives et négatives est à peu près le même. La conjoncture se stabilise à un faible niveau.

Sentiment among German companies has brightened somewhat. The ifo Business Climate Index rose to 85.5 points in February, up from 85.2 points in January. This is due to slightly less pessimistic expectations. Assessments of the current situation remained unchanged – positive and negative responses here were nearly in balance. The German economy is stabilizing at a low level.

The business climate in German residential construction has fallen from -56.9 points to -59.0 points – the lowest value ever measured. The same is true for business expectations, which have sunk even further, dropping from -64.7 points to -68.9 points. “The outlook for the coming months is bleak,” says Klaus Wohlrabe, Head of Surveys at ifo. “Residential construction is still facing the double whammy of a lack of new orders and ongoing project cancellations.”

The lack of orders in manufacturing is increasingly becoming a burden on the German economy. In January, 36.9% of manufacturing companies reported a lack of orders, up from 36.0% in October. A year ago, the proportion was just 20.9%. In the service sector, the proportion rose from 29.3% to 32.1%. “The lack of orders has worsened noticeably over the past year. Hardly an industry has been spared,” says Klaus Wohlrabe, Head of Surveys at ifo. “What’s more, order backlogs are shrinking.”

Material shortages in German manufacturing continue to reduce. In January, 12.5% of the companies surveyed reported shortages, down from 18.2% in October. “At the moment, the attacks on commercial shipping in the Red Sea aren’t affecting the supply situation for raw materials and intermediate products,” says Klaus Wohlrabe, Head of Surveys at ifo.

Companies in Germany have become less willing to hire new staff. The ifo Employment Barometer fell to 95.5 points in January, down from 96.5 points in December. “The difficult economic situation is now also being reflected in personnel planning,” says Klaus Wohlrabe, Head of Surveys at ifo. “Companies are rather reluctant to hire new staff. An initial round of layoffs is becoming more likely.”

Sentiment in the German export industry has clouded over. The ifo Export Expectations fell to -8.4 points in January, down from -7.1 points in December. “The German export economy is off to a worse start in the new year,” says Klaus Wohlrabe, Head of Surveys at ifo. “Exporters need fresh momentum.”

Sentiment among German companies has deteriorated further at the beginning of the year. The ifo Business Climate Index fell to 85.2 points in January, down from 86.3 points in December. Companies assessed their current situation as worse. Their expectations for the months ahead were also once again more pessimistic. The German economy is stuck in recession.

Le moral des dirigeants allemands s’est à nouveau dégradé en début d’année. L'indice ifo du climat des affaires est tombé à 85,2 points, contre 86,3 points[1] au mois de décembre 2023. Les entreprises considèrent que leur situation s’est détériorée par rapport au mois précédent. Les attentes pour les mois à venir s'avèrent encore une fois plus pessimistes. L’économie allemande est enlisée dans la récession.

 

It has become slightly easier for German companies to obtain new loans. In December, 25.6% of companies in ongoing credit negotiations reported restraint on the part of banks; in September, that figure was 29.2%. “However, the banks remain cautious when it comes to lending,” says Klaus Wohlrabe, Head of Surveys at ifo.

The ifo Business Climate Index for residential construction has sunk to an all-time low. Sentiment in December fell to -56.8 points, down from -54.4 points in the previous month. This is its lowest level since the survey began in 1991. Dissatisfaction with the current situation is escalating. Companies also fear further business losses in the first half of 2024. “Although interest rates for home loans have recently been falling again, there is as yet no sign that the situation is easing,” says Klaus Wohlrabe, Head of Surveys at ifo. “These exceptionally weak expectations show that companies currently have no hope. The prospects for 2024 are bleak,” Wohlrabe says.

More companies in Germany want to hire employees. The ifo Employment Barometer rose to 96.5 points in December, up from 95.9 points in November. “At the moment, service providers in particular are looking for new staff,” says Klaus Wohlrabe, Head of Surveys at ifo. “In manufacturing, however, a lack of orders is leading companies to be rather cautious.”

Sentiment in the German export industry has deteriorated. The ifo Export Expectations fell to -6.7 points in December, down from -4.1 points in November. “Seasonal cheer is lacking in the export business,” says Klaus Wohlrabe, Head of Surveys at ifo. “Companies see few encouraging prospects for the start of the year.”

Le moral des dirigeants d’entreprise allemands s’est assombri. L’indice ifo du climat des affaires est passé de 87,2 points en novembre à 86,4 points[1] au mois de décembre. Les entreprises se déclarent moins satisfaites de la marche de leurs activités et envisagent le premier semestre 2014 avec un pessimisme accru. La conjoncture reste morose pendant la période des fêtes.

 

Sentiment in German business has clouded over. The ifo Business Climate Index fell to 86.4 points in December, down from 87.2 points (seasonally adjusted) in November. Companies were less satisfied with their current business. They were also more skeptical about the first half of 2024. As the year draws to a close, the German economy remains weak.

The clouds continue to gather over German residential construction. More and more companies are lamenting a lack of orders. In November, 49.1% of businesses had this complaint, up from 48.7% in the previous month. This is now the eighth increase in a row. Order cancellations were reported by 21.5% of companies, almost as many as in the previous month (22.2%). “Residential construction companies are hemorrhaging customers. High construction costs and the current interest rate level are causing many builders to despair. Many projects simply no longer pay off under these conditions and have to be postponed or canceled,” says Klaus Wohlrabe, Head of Surveys at ifo.

The willingness among companies in Germany to hire new staff has decreased slightly. The ifo Employment Barometer fell to 95.9 points in November, down from 96.2 points in October. “With a solid foundation for recovery still not in sight, companies are putting off hiring new staff,” says Klaus Wohlrabe, Head of Surveys at ifo. “Many companies continue to complain about a lack of new orders.”

Sentiment in the German export industry has improved. The ifo Export Expectations rose to minus 3.8 points in November, up from minus 6.3 points in October. “However, the export economy still isn’t managing to develop any momentum,” says Klaus Wohlrabe, Head of Surveys at ifo. “German companies have yet to benefit much from the economic upswing in many countries.”

Sentiment among German companies has improved slightly. The ifo Business Climate Index rose to 87.3 points in November, up from 86.9 points in October. This is its third consecutive increase. Companies assessed their current business situation as somewhat better. Expectations for the coming months were also less pessimistic. The German economy is stabilizing, albeit at a low level.

At present, 6.8% of German companies feel their economic survival is threatened, finds an ifo Institute survey. In the previous survey conducted in January 2023, it was 4.8%. “The current phase of economic weakness is leading to a growing number of corporate insolvencies,” says Klaus Wohlrabe, Head of Surveys at ifo. “But there’s not yet any indication of this turning into a larger wave.”

Germany’s event industry is urgently looking for more skilled workers, finds the latest ifo Institute survey. In October, 40% of event organizers reported having difficulties finding suitable staff, down from 45% in July. In summer 2022, the figure was 64%. “Following the slew of cancelations during the coronavirus pandemic, many companies couldn’t afford to keep people on,” says Klaus Wohlrabe, Head of Surveys at ifo. As a result, some festival organizers found it hard this summer to find enough security staff.

German manufacturing is seeing a considerable reduction in material shortages. In October, 18.2% of the companies surveyed reported shortages, down from 24.0% in September. This is a finding from the ifo Institute’s latest survey. “Things are almost back to pre-crisis levels,” says Klaus Wohlrabe, Head of Surveys at ifo. “Companies should plan now for future shortages, diversify their supply chains, and increase inventory levels.”

Germany’s wave of cancellations in residential construction continues. In October, 22.2% of companies reported canceled projects, up from 21.4% in the previous month. “It’s getting worse all the time, with more and more projects failing due to higher interest rates and elevated construction prices,” says Klaus Wohlrabe, Head of Surveys at ifo. “In residential construction, new business remains very low and companies’ order backlogs are diminishing.”

Companies in Germany are once again becoming more willing to hire new staff. The ifo Employment Barometer rose to 96.2 points in October, up from 95.8 points in September. “Nevertheless, companies continue to be cautious about making new hires,” says Klaus Wohlrabe, Head of Surveys at ifo. “The lack of new orders is still having a negative effect.”

Sentiment in the German export industry has brightened a little. The ifo Export Expectations rose to -6.9 points in October, up from -10.8 points in September. “However, Germany’s export economy is still being rather cautious looking ahead,” says Klaus Wohlrabe, Head of Surveys at ifo. “Many companies are experiencing a drop in competitiveness in international markets.”

Le moral des entrepreneurs allemands s'est amélioré. C'est ce qu'indique l'indice ifo du climat des affaires qui a progressé de 85,8 points en septembre à 86,9 points (Corrigé des variations saisonnières) au mois d’octobre. Les dirigeants se disent un peu plus satisfaits de la marche de leurs activités et un peu moins pessimistes pour les mois à venir. Une lueur d'espoir se profile à l’horizon pour l’économie allemande.

Sentiment in the German economy has improved. The ifo Business Climate Index rose to 86.9 points in October, up from 85.8 points  (Seasonally adjusted) in September. Companies are somewhat more satisfied with their current business. In addition, managers were less pessimistic in their view of the coming months. Germany’s economy can see a silver lining ahead.

It is becoming more difficult for companies in Germany to obtain new loans. In September, 29.2% of companies in ongoing credit negotiations reported restraint on the part of banks. In June, that figure was only 21.3%. “Banks are gradually increasing interest rates on loans and are more reluctant to grant them,” says Klaus Wohlrabe, Head of Surveys at ifo.

In German residential construction, more and more companies are reporting canceled projects. In September, 21.4% of businesses were affected, up from 20.7% in the previous month. This is one of the findings described in an article in the latest issue of ifo Schnelldienst. “Many projects are no longer economically viable due to high interest rates and increased construction costs. The apartments that aren’t being started today will be missing from the rental market in two years’ time. At -54.8 points, the ifo Business Climate for residential construction is now at its lowest level since the survey began in 1991,” says Klaus Wohlrabe, Head of Surveys at ifo. 

Supply problems in German manufacturing continue to ease. In September, 24.0% of the companies surveyed reported material shortages, down from 24.4% in August. “Things are settling down,” says Klaus Wohlrabe, Head of Surveys at ifo. The situation remains most problematic in the automotive industry, where just under 53% of the companies reported bottlenecks in the supply of raw materials and intermediate products.

The willingness among companies in Germany to hire new staff has taken a knock. The ifo Employment Barometer fell to 95.8 points in September, down from 97.0 points in August. This is its lowest level since February 2021. “The robust expansion of employment seen over the past few months has come to a standstill,” says Klaus Wohlrabe, Head of Surveys at ifo. “Due to a lack of orders, companies are being rather cautious about filling vacant positions.”

Sentiment in the German export industry is markedly worse. The ifo Export Expectations fell to -11.3 points in September, down from -6.5 points in August. “Germany’s export economy is going through a weak phase,” says Klaus Wohlrabe, Head of Surveys at ifo. “Exports to all key regions are currently in decline.”

Sentiment in the German economy remains bleak. The ifo Business Climate Index fell to 85.7 points in September, down from 85.8 points (seasonally adjusted) in August. Once again, companies were less satisfied with their current business situation. However, their pessimism regarding the coming months dissipated slightly. The German economy is treading water.

The crisis in the German residential construction sector continues to intensify. In August, 20.7 percent of companies reported canceled projects, up from 18.9 percent in the previous month. This is a finding of surveys by the ifo Institute. “Residential construction cancellations are piling up to a new high. We haven’t seen anything comparable to this since the survey began in 1991. The uncertainty in the market is huge,” says Klaus Wohlrabe, Head of Surveys at ifo.

German manufacturing is seeing fewer material shortages. In August, 24.4 percent of the companies surveyed reported shortages, down from 29.5 percent in July. This is a finding from the ifo Institute’s latest survey.

The willingness among companies in Germany to hire new staff has slightly decreased. The ifo Employment Barometer fell to 97.0 points in August, down from 97.1 points in July. “At the moment, plans for layoffs and hires are just balancing each other out,” says Klaus Wohlrabe, Head of Surveys at ifo. “Because of the economic downturn, many companies are holding back on hiring.”

Sentiment in the German export industry has deteriorated slightly. The ifo Export Expectations fell to minus 6.3 points in August, down from minus 6.0 points in July. “German exporters continue to struggle with weak global demand,” says Klaus Wohlrabe, Head of Surveys at ifo. “More and more companies are also complaining about being less able to compete at the global level.”

Sentiment among German managers has darkened further. The ifo Business Climate Index slipped to 85.7 points in August, down from 87.4 points in July. This is its fourth consecutive fall. Assessments of the current situation fell to their lowest level since August 2020. Moreover, companies are increasingly pessimistic about the months ahead. The German economy is not out of the woods yet.

The slump in residential construction in Germany continues. In July, 40.3% of companies complained of a lack of orders, up from 34.5% in June. A year ago, the proportion was 10.8%. These findings are from the ifo Institute’s latest survey. “A storm is brewing. Following many years of expansion, now higher interest rates and the drastic rise in construction costs are choking off new business,” says Klaus Wohlrabe, Head of Surveys at ifo.

German manufacturing is facing fewer and fewer problems with material shortages. In July, 29.5% of the companies surveyed reported shortages, down from 31.9% in June. “The situation has been easing steadily for more than a year,” says Klaus Wohlrabe, Head of Surveys at ifo, “although bottlenecks still exist for some electronic components.”

The willingness among companies in Germany to hire new staff has declined sharply. The ifo Employment Barometer fell to 97.1 points in July, down from 98.3 points in June. “At present, positive and negative responses balance each other out exactly,” says Klaus Wohlrabe, Head of Surveys at ifo. “Virtually all industries are becoming more cautious about taking on new hires.”

Sentiment in the German export industry has deteriorated slightly. The ifo Export Expectations slipped to -6.0 points in July, down from -5.9 points in June. “Demand from abroad is developing rather weakly,” says Klaus Wohlrabe, Head of Surveys at ifo. “This is also the result of restrictive monetary policy in the US and Europe, the effects of which are gradually being felt.”

Sentiment among German companies has worsened further. The ifo Business Climate Index fell to 87.3 points in July, down from 88.6 points  in June. This is its third consecutive fall. In particular, companies were notably less satisfied with their current business. Expectations were also lower. The situation in the German economy is turning bleaker.

German manufacturing is seeing fewer material shortages. In June, 31.9% of the companies surveyed reported shortages, down from 35.3% in May. However, this is still much higher than the long-term average of 15.2%. “Unfortunately, the easing does little to counteract the darkening mood in manufacturing,” says Klaus Wohlrabe, Head of Surveys at ifo. “Companies can process their existing orders faster, but they are currently receiving too few new ones.”

The willingness among companies in Germany to hire new staff has improved slightly. The ifo Employment Barometer rose to 98.4 points in June, up from 98.2 points in May. “But in manufacturing in particular, the sector’s budding pessimism is reflected in its cautious personnel planning,” says Klaus Wohlrabe, Head of Surveys at ifo. “Only service providers continue to consider hiring new people.”

Sentiment in the German export industry has deteriorated noticeably. The ifo Export Expectations fell to minus 5.6 points in June, down from plus 1.0 points in May. This is the lowest level since November 2022. “In addition to weak demand on the German domestic market, we’re now also seeing fewer orders from abroad,” says Klaus Wohlrabe, Head of Surveys at ifo. “This is bad news for Germany’s export economy.”

German manufacturing is seeing fewer material shortages. In May, 35.3% of the companies surveyed reported shortages, down from 39.2% in April. This is a finding from the ifo Institute’s latest survey. “The easing provides a little relief to Germany’s manufacturers as they deal with the difficulties of the current economic situation,” says Klaus Wohlrabe, Head of Surveys at ifo. “They can process existing orders more quickly, thus sustaining production. At present, the companies surveyed have an order backlog equivalent to 4.3 months of production – much more than the long-term average of 2.9 months. The decline in orders is therefore not yet having too great an impact.” 

The willingness among companies in Germany to hire new staff has declined. The ifo Employment Barometer fell to 98.3 points in May, down from 100.2 points in April. “Fewer new orders and rising uncertainty are causing restraint among companies,” says Klaus Wohlrabe, Head of Surveys at ifo. “Caution is also on the rise in the service sector, which until recently had been more positively inclined.”

Le moral des exportateurs allemands s'est sensiblement détérioré. En mai, les prévisions communiquées à l'Institut ifo ont reculé, passant de + 6,5 points en avril à + 1,8 points. C'est le niveau le plus bas depuis novembre 2022. « Les hausses des taux d’intérêt commencent à peser sur la demande », explique Klaus Wohlrabe, directeur des enquêtes conjoncturelles de l’Institut ifo. « Les entreprises exportatrices allemandes ont perdu de leur dynamisme. » 

Sentiment in the German export industry is markedly worse. The ifo Export Expectations fell to plus 1.8 points in May, down from plus 6.5 points in April. This is the lowest level since November 2022. “Global interest rate hikes are slowly having an effect on demand,” says Klaus Wohlrabe, Head of Surveys at ifo. “The German export economy lacks momentum.”

Sentiment in the German economy has suffered a setback. The ifo Business Climate Index fell to 91.7 points in May, after 93.4 points in April. This marks the first decline after six increases in a row. Driving this development are the significantly more pessimistic expectations. Managers are somewhat less satisfied with their current situation. German companies are skeptical about the upcoming summer.

German manufacturers are having an easier time sourcing raw materials and intermediate products. In April, 39.2% of the companies surveyed reported problems, down from 41.6% in March. “That’s good news for the sector, not least because it marks a rise in new orders,” says Klaus Wohlrabe, Head of Surveys at ifo. “But the companies would surely have also been delighted if the situation had eased even more.” 

Companies in Germany are more willing to hire new staff. The ifo Employment Barometer rose to 100.2 points in April, up from 99.9 points in March. “Employment is continuing to grow, although that growth is slowing, partly because of the shrinking population,” says Klaus Wohlrabe, Head of Surveys at ifo. “The drivers of employment growth in Germany are the service providers.”

Sentiment among German exporters has improved noticeably. The ifo Export Expectations for manufacturing companies rose to plus 6.9 points in April, up from plus 4.1 points in March. This is its highest level since February 2022. “Robust economic development in the US and the encouraging trend in China are increasing demand for German exports,” says Klaus Wohlrabe, Head of Surveys at ifo. “After a weak start to the year, exports have been able to grow again in the second quarter.”

Sentiment in German business has improved slightly. The ifo Business Climate Index rose to 93.6 points in April, up from 93.2 points in March. This was due to companies’ improved expectations. However, companies assessed their current situation as a little worse. German business’s worries are abating, but the economy is still lacking dynamism.

It has become easier for German companies to obtain new loans. In March, 22.7 percent of companies in ongoing credit negotiations reported restraint on the part of banks. In December, that figure was 30.0 percent. This is a finding of surveys by the ifo Institute. “The turbulence at some international banks is having no impact on lending in Germany,” says Klaus Wohlrabe, Head of Surveys at ifo. 

Material shortages in German manufacturing are slowly dissipating. In March, 41.6 percent of the companies surveyed reported problems, down from 45.4 percent in February. This is a finding from the ifo Institute’s latest survey. “This easing will have a positive impact on industrial production in the months ahead,” says Klaus Wohlrabe, Head of Surveys at ifo. “But we’re still a long way from an ideal supply situation.” 

German companies are once again willing to hire more staff. The ifo Employment Barometer rose to 99.9 points in March, up from 99.4 points in February. “The labor market is proving very robust,” says Klaus Wohlrabe, Head of Surveys at ifo. “Service providers in particular are looking for new employees.”

Sentiment among German exporters has brightened somewhat. The ifo Export Expectations rose to 4.0 points in March, up from 3.5 points in February. “Export demand still lacks some momentum,” says Klaus Wohlrabe, Head of Surveys at ifo. “Global economic development is rather subdued.”

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.

There has been a noticeable improvement in the business climate for Germany’s self-employed, finds the latest index for this segment (“Jimdo-ifo Business Climate Index for the Self-Employed”). The indicator rose to minus 1.1 points* in February, up from minus 7.3 points in January. “More and more self-employed people are feeling hopeful about the months ahead,” says Klaus Wohlrabe, Head of Surveys at ifo. “Also, uncertainty is in decline.”

The shortage of materials in German manufacturing has continued to ease. In February, 45.4 percent of the companies surveyed reported problems. This is the lowest level since April 2021.  In January, the figure was 48.4 percent. This is a finding of the ifo Institute’s latest survey.

The willingness among companies in Germany to hire new staff has decreased somewhat. In February, the ifo Employment Barometer fell to 99.4 points, down from 100.1 points in January. In view of the shortage of skilled workers, however, it is to be expected that companies in many industries will continue to look for employees.

Sentiment among German exporters has worsened somewhat. In February, the ifo Export Expectations slipped to 3.8 points, down from 4.1 points in January. Weak global demand is currently dampening hopes for German exports.

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.

The business climate for Germany’s self-employed continued to recover at the beginning of the year. In January, the index for this segment (“Jimdo-ifo Business Climate Index for the Self-Employed”) rose to minus 7.3 points (not seasonally adjusted), up from minus 11.4 points (not seasonally adjusted) in December. “While pessimism is dwindling, it’s still too early to talk about a noticeable improvement for the self-employed,” says Klaus Wohlrabe, Head of Surveys at ifo.

Fewer German companies feel their economic survival is threatened. The proportion fell to 4.8 percent in January from 6.3 percent in December, finds an ifo Institute survey.

Material shortages have decreased in German manufacturing. In January, 48.4 percent of the companies surveyed reported problems. In December, that figure was 50.7 percent. This is a finding of the ifo Institute’s latest survey. “Given the mild winter recession that’s emerging, we would’ve liked to see a stronger decline,” says Klaus Wohlrabe, Head of Surveys at ifo. “Many companies are only slowly managing to work through their high order backlogs.” 

The willingness among companies in Germany to hire new staff has increased. The ifo Employment Barometer rose to 100.2 points in January, up from 99.6 points in December. As pessimism wanes in the German economy, the labor market is following suit.

Sentiment among German exporters has become brighter. The ifo Export Expectations rose to plus 4.3 points in January, up from plus 2.0 points in December. German exporters are hoping for new momentum at the beginning of the year.

Sentiment in the German economy has brightened. The ifo Business Climate Index rose to 90.2 points in January, up from 88.6 points in December. This is due to considerably less pessimistic expectations. Companies were, however, somewhat less satisfied with their current situation. The German economy is starting the new year with more confidence.

It is becoming more difficult for companies in Germany to obtain new loans. In December, 29.9 percent of companies in ongoing credit negotiations reported restraint on the part of banks – in September, that figure was only 24.3 percent. This is a finding of surveys by the ifo Institute. “Banks are gradually increasing interest rates on loans and are more reluctant to grant them,” says Klaus Wohlrabe, Head of Surveys at ifo. “The era of low interest rates is over for now. Many companies will have to get used to this and adjust how they structure their financing accordingly.” 

The business climate for the self-employed in Germany saw a marked recovery at the end of the year, according to the latest index for this segment (“Jimdo-ifo Business Climate Index for the Self-Employed”). It rose to minus 11.4 points (not seasonally adjusted) in December, up from minus 21.6 points (not seasonally adjusted) in November. “There is light at the end of the economic tunnel,” says Klaus Wohlrabe, Head of Surveys at ifo. “Concerns for survival, while still at a high level, have decreased somewhat.”

Material shortages have eased noticeably in German manufacturing. In December, 50.7 percent of the companies surveyed reported problems, down from 59.3 percent in November – the third consecutive fall. This is a finding from the ifo Institute’s latest survey. “Shortages appear to be easing in many industries,” says Klaus Wohlrabe, Head of Surveys at ifo. “This will shore up the economy in the months ahead. However, depending on the development of the corona situation in China, there may be setbacks in the bottlenecks again.” 

German retailers’ supply problems have eased slightly in the holiday season, finds an ifo Institute survey. In December, 62.2 percent complained about supply bottlenecks, down from 71.1 percent in November. Moreover, there was a notable further decrease in pessimism among retailers regarding the months ahead. “This easing has come at just the right time for many businesses in the trade sector,” says Klaus Wohlrabe, Head of Surveys at ifo. “However, there will still be gaps on shelves.”

The willingness among companies in Germany to hire new staff has dipped slightly. The ifo Employment Barometer reached 99.5 points in December, down from 99.6 points in November. Nevertheless, the employment outlook for the first quarter of 2023 is positive, driven primarily by service providers. Personnel service providers are also optimistic about the coming months.

Sentiment among German exporters has improved slightly. The ifo Export Expectations rose to plus 1.6 points in December, up from plus 0.9 points in November. When it comes to their exports, German manufacturers are cautiously optimistic as they head into the new year.

Sentiment in the German economy has brightened considerably. The ifo Business Climate Index rose to 88.6 points in December, up from 86.4 points (seasonally adjusted) in November. Companies assessed their current situation as better again. This comes on the heels of six consecutive falls in the indicator for the current situation. Expectations also improved noticeably. German business is entering the holiday season with a sense of hope.

At present, 7.9 percent of German companies feel their economic survival is threatened. This proportion has risen only slightly compared to the previous month, when it was 7.5 percent. This is the finding of an ifo Institute survey, “Against the backdrop of the economic slowdown, companies are showing great resilience,” says Klaus Wohlrabe, Head of Surveys at ifo. 

The business climate for Germany’s self-employed has recovered somewhat but remains at a low level, finds the latest index for this segment (“Jimdo-ifo Business Climate Index for the Self-Employed”). It rose to minus 21.6 points (not seasonally adjusted) in November, up from minus 25.0 points (not seasonally adjusted) in October. “However, the situation remains difficult for the self-employed,” says Klaus Wohlrabe, Head of Surveys at ifo. “They have major concerns for their survival.”

Companies in Germany are looking to hire more staff. The ifo Employment Barometer rose to 99.6 points in November, up from 97.8 points in October. Against the backdrop of decreasing uncertainty, the number of employees in Germany could continue to rise. However, the shortage of skilled workers will remain a lasting problem.

Material shortages in German manufacturing have eased. In November, 59.3 percent of the companies surveyed reported problems, down from 63.8 percent in October – the lowest level since April 2021. This is a finding from the ifo Institute’s latest survey.

Sentiment among German exporters has improved. The ifo Export Expectations rose to plus 0.4 points in November, up from minus 4.6 points in October. At present, positive and negative assessments are roughly in balance. Small glimmers of hope are emerging for the German export industry.

German retailers’ supply problems have eased slightly, finds an ifo Institute survey. In November, 71.1 percent of businesses were struggling with supply bottlenecks, down from 74.9 percent in October. Moreover, there was a notable decrease in pessimism among retailers regarding the coming months.