A man fuels a vehicle up at a gas station in Berlin, Germany, Sept. 8, 2022. (Xinhua/Ren Pengfei)
According to the Munich-based ifo institute, the business climate index in Germany climbed from 93.2 points in March to 93.6 points in April. However, experts' comment on the survey results was cautious, due to a lack of economic momentum.
FRANKFURT, April 24 (Xinhua) -- The business climate index in Germany has risen for the sixth time in a row, indicating companies' improved expectations for the coming months, the ifo Institute for Economic Research said on Monday. However, experts' comment on the survey results was cautious, due to a lack of economic momentum.
According to the Munich-based ifo institute, the business climate index climbed from 93.2 points in March to 93.6 points in April. This shows that the nearly 9,000 top managers polled are more optimistic now than at any time since February 2022, said the institute.
From an industry perspective, ifo said that manufacturing businesses are significantly more confident about future growth, while companies in the service sector see the current situation as slightly worse and are becoming more pessimistic about the next few months.
According to ifo President Clemens Fuest, the improvement in business expectations is mostly due to the stabilization of the energy market. Companies have also recorded a further easing of supply bottlenecks, which has had a positive impact on the prices of intermediate products. The manufacturing industry has been most affected, which is why optimism was particularly strong in this area.
People visit a shopping mall in Berlin, Germany, on Feb. 1, 2023. (Photo by Stefan Zeitz/Xinhua)
"German companies' winter worries have diminished as an economic slump is no longer expected," Fuest said.
However, the institute also pointed out that the German economy continues to lack vitality, which explains why some economists remain cautious.
"The renewed recovery in the ifo business climate indicates that the German economy is likely to grow again in the second quarter. But we should not become overconfident", said Joerg Kraemer, chief economist for Commerzbank in Germany.
According to Fritzi Koehler-Geib, chief economist at the German development bank KfW, the economy had a successful start to the spring quarter. However, even with favorable developments, it is unlikely to surpass stagnation and may only avoid contraction in 2023 as a whole, she added.
"The German economy is still far from spring fever," wrote Ulrich Kater, chief economist at Dekabank. Despite the improvement, business sentiment remains below average. In view of rising interest rates and a fragile global economy, a strong upturn is hardly to be expected, said Kater.
Consumers shop at a supermarket in Berlin, capital of Germany, Oct. 28, 2022. (Xinhua/Ren Pengfei) ■
