Germany: Business confidence rises in May but remains pessimistic
Sentiment among German businesses recovered somewhat in May, but remained entrenched in pessimistic territory, as the ifo Business Climate index rose to 79.5 from a revised 74.2 in April (previously reported: 74.3). The uptick came on the back of a marked improvement in business expectations, with views on the current situation edging down slightly. Noting the uptick in expectations, Clemens Fuest, president of the ifo Institute, stated: “The gradual easing of the lockdown offers a glimmer of hope.”
Sector-level data showed that firms in all sector grew more upbeat regarding expectations, while views on the current climate deteriorated in the manufacturing and construction sectors. The lifting of some restrictive measures had a substantial influence on business confidence in the trade sector, with retailers in particular more positive.
Sentiment among German businesses recovered somewhat in May, but remained entrenched in pessimistic territory, as the ifo Business Climate index rose to 79.5 from a revised 74.2 in April (previously reported: 74.3). The uptick came on the back of a marked improvement in business expectations, with views on the current situation edging down slightly. Noting the uptick in expectations, Clemens Fuest, president of the ifo Institute, stated: “The gradual easing of the lockdown offers a glimmer of hope.”
Sector-level data showed that firms in all sector grew more upbeat regarding expectations, while views on the current climate deteriorated in the manufacturing and construction sectors. The lifting of some restrictive measures had a substantial influence on business confidence in the trade sector, with retailers in particular more positive.