German business sentiment shows slight improvement in February: ifo

Despite this slight improvement, the overall sentiment suggests that the German economy is merely stabilising at a low level, with the assessments of the current situation showing no change from the previous month, indicating a balance between positive and negative responses, as per ifo.

In the manufacturing sector, the business climate index took a downturn, reaching its lowest assessment of the current situation since September 2020. Companies’ expectations for the future remained nearly as bleak as in the previous month, with a continuing decline in the order backlog and announcements of further production cuts, reflecting persistent challenges in the industry.

The trade sector also experienced a decrease in its index, with companies reporting a noticeable drop in satisfaction with their current business situation. However, there was a slight improvement in expectations, albeit companies remain deeply sceptical about future business development.

ALCHEMPro News Desk (DP)