The mood in the German economy improved for the fourth time in a row in August. In one area, however, the upward trend flattened significantly.
Dhe prospects for the German economy are getting better and better after the drastic slump in the Corona crisis. The mood in companies brightened further in August. The Ifo business climate rose compared to July by 2.2 points to 92.6 points, as the Ifo Institute announced in Munich on Tuesday. It is the fourth increase in a row – after a historic slump in the Corona crisis.
Analysts had expected an increase, but only forecast this to an average of 92.1 points. “The German economy is on the road to recovery,” commented Ifo President Clemens Fuest. The companies assessed both their current situation and the outlook for the next six months as better. The mood among the company executives is still on the upswing, added Fuest.
The mood brightened noticeably in industry, among service providers and in construction. The mood in retail was also better, but it only rose slightly. In the wholesale trade, it even clouded over a little. The Ifo business climate is considered to be the most important leading economic indicator in Germany. Every month around 9,000 companies are asked about their economic assessment.
On Tuesday morning, the Federal Statistical Office confirmed in principle the drastic slump in the German economy in the second quarter. However, at minus 9.7 percent, it was a little less severe than previously known. Economists expect a significant economic recovery in the second half of the year.