Sentiment has improved at companies in Germany, as reflected by the latest ifo Business Climate Index, which rose to 89.4 points in April 2024, up from 87.9 points in March 2024. This marks the third consecutive rise for the index, indicating growing optimism in the German economy. Companies reported greater satisfaction with their current business conditions, and their expectations for the future have brightened, suggesting that the economy is stabilising.In the manufacturing sector, the index experienced an uptick due to significantly less pessimistic expectations. However, companies still assessed their current situation as worse than before. Order books continued to shrink, and there is no immediate prospect of increased production.
The ifo Business Climate Index for Germany rose to 89.4 points in April 2024 from 87.9 in March, marking the third consecutive rise.
This reflects growing optimism as companies report greater satisfaction with current conditions and improved future expectations.
The country's manufacturing sector saw less pessimistic outlooks despite shrinking order books.
The index also rose in the trade sector. Business expectations improved markedly, although they remain pessimistic overall. Companies in the trade sector reported being somewhat less satisfied with their current business conditions. This was primarily influenced by the wholesale situation, which saw a sharp improvement in business, while retailers experienced a notable boost.
Fibre2Fashion News Desk (DP)