The mood in the German economy brightened up surprisingly in April. The Ifo business climate rose by one point compared to March to 91.8 points, as the Ifo Institute announced on Monday in Munich. Analysts, on the other hand, had expected a slowdown to 89.0 points. In March, Germany’s most important economic barometer collapsed due to Russia’s attack on Ukraine.
“After the initial shock of the Russian attack, the German economy is showing resilience,” commented Ifo President Clemens Fuest. Sentiment has stabilized at a low level. The still pessimistic expectations of the companies brightened noticeably, the current situation was rated hardly better. The business climate improved in industry and among service providers, while it deteriorated in trade and construction.
The ifo business climate is based on monthly reports from companies in manufacturing, construction, wholesale and retail. The approximately 7,000 companies assess their current business situation and their expectations for the next six months. (dpa)