BERLIN, May 22 (Xinhua) -- German business sentiment edged up slightly in May but remained near six-year low, according to a survey on Friday, as Europe's largest economy struggles to regain momentum following the Middle East tensions and the resulting energy shock.
The Munich-based ifo institute said its business climate index rose to 84.9 points in May from 84.5 in April, a modest improvement after sentiment had deteriorated sharply in recent months.
Companies assessed both their current situation and near-term expectations somewhat more positively, though overall confidence remained weak by historical standards.
"The German economy is stabilizing for the time being," ifo President Clemens Fuest said, although he cautioned that the situation remained fragile.
Business sentiment across Germany's private sector has been under pressure since Middle East tensions escalated in late February. Even in May, confidence in parts of the service sector such as logistics and tourism reported an improvement but stayed subdued, while manufacturers grew more pessimistic about the outlook for the months ahead, ifo said.
Flash purchasing managers' index (PMI) data released by S&P Global on Thursday pointed to a modest pickup in Germany's overall private-sector activity in May, but the composite reading was still expected to remain below the 50-point threshold that separates growth from contraction.
Manufacturing activity, meanwhile, was projected to slip back into contraction territory, with the manufacturing PMI seen falling to 49.9 from 51.4 in April. It marked a four-month low after the sector had briefly returned to expansion at the start of the year.
Considering the outlook, the European Commission on Thursday halved its forecast for German economic growth this year to 0.6 percent. ■
