Business Climate Continues to Improve

March 24, 2010 · Filed Under Markets

The Ifo Business Climate for industry and trade in Germany has strongly improved in March. Spring has now arrived in the German economy, announces Ifo today. Firms have assessed their current business situation in particular as much better. In addition, their expectations for the coming six months are more confident than in February. The brightening of the business climate is evident across all surveyed sectors of the economy.

According to Hans-Werner Sinn, President at the Ifo Institute for Economic Research, the business climate in manufacturing is clearly more friendly than in the previous month. Manufacturing firms have reported a much more favourable business situation. With regard to the six-month outlook their confidence has remained nearly unchanged. They view their export opportunities just as promising as in February. Fewer manufacturing firms plan to reduce employment than one month ago.

The business climate index has risen in construction and in wholesaling. Firms of both sectors have assessed their current situation as more positive than in February, and are also less sceptical about the six-month business outlook.

In retail the business situation has improved considerably. Survey participant have assessed their current situation as well as the business outlook as much more positive than in February.