The index of the assessment of the situation fell to 95.0 (previous month: 95.4) points. Economists, on the other hand, had forecast an increase to 96.4 points. In contrast, the index of business expectations rose to 92.2 (revised: 91.0). 91.1 points had been expected, based on a provisional March value of 91.2.
“The concerns of German companies are easing, but the economy is lacking in dynamism,” commented the economic researchers on the result.
In the manufacturing sector, the index rose slightly. “On the one hand, the optimistic voices with a view to future development have increased noticeably. On the other hand, the companies rated their current business significantly worse,” said the ifo Institute. Production is to be expanded in the coming months. Capacity utilization rose from 84.3 to 84.5 percent and was thus above the long-term average of 83.6 percent.
In the service sector, the upward movement in the business climate of the past few months has come to an end. The service providers assessed their current situation somewhat worse. In addition, pessimism about the coming months increased again for the first time. In trading, the index fell slightly. The traders appeared somewhat less satisfied with the current situation. On the other hand, the pessimism in the expectations continued to decrease. Due to weak sales development, many retailers are still reluctant to order goods.
In construction, the business climate indicator rose. Expectations for the coming months improved, but concerns remained high. The assessment of the current situation fell to its lowest level since December 2015.
DJG/hab/smh
FRANKFURT (Dow Jones)
Image sources: ifo