Germany: Business confidence remains high in May, despite slight moderation
May 22, 2015
The business confidence index, elaborated by the Ifo Institute, moderated slightly from April’s 108.6 to 108.5 in May, but came in above market expectations of a decrease to 108.3. May’s reading represented the first moderation after six months of rising business confidence.
According to the Institute, May’s print reflects that firms were slightly less optimistic about future business development than in the previous month. Conversely, once more they were more positive regarding their current economic situations. Business climate in the manufacturing sector recorded the first drop after six consecutive increases. Sentiment also moderated in the wholesaling sector. By contrast, business climate in the construction sector improved again and confidence among retailers almost reached a one-year high. Overall, the Ifo Institute commented that the reading suggests that, “the German economy remains on track.”