Monday, 22 June 2009

Ifo Business Climate Germany

Ifo Business Climate Germany
Results of the June 2009 Ifo Business Survey
Ifo Business Climate Brightens Somewhat

The Ifo Business Climate for industry and trade in Germany improved once again in June. The brightening
was solely the result of the firms’ expectations – the pessimism of the survey participants with regard to the six-month business outlook has again weakened. Their dissatisfaction with the current business situation is just as strong as it was in May. The survey results confirm that the German economy is gradually stabilising.

In manufacturing the business climate indicator rose. The survey participants have appraised their current
business situation somewhat less unfavourably than in the previous month. Nevertheless, the manufacturers are largely dissatisfied with their present situation. However, a further worsening of business in the coming six months is no longer expected quite so frequently as in the previous month. The decline in export business, according to the survey responses, will weaken somewhat. The firms’ employment plans are less negative
than they were in the previous month but are still clearly aimed at personnel reductions.

In wholesaling and in retailing the business climate has further improved. In both distribution sectors the brightening of the business climate is the result of firms’ clearly less negative business expectations. However,
wholesalers and retailers have given more unfavourable assessments of their current business situation than in May.

The business climate in construction remains nearly stable. The current business situation has been given somewhat worse appraisals by the firms. However, with regard to the business outlook they are less reserved than they were last month.

Hans-Werner Sinn

President of the Ifo Institute for Economic Research at the University of Munich

Detailed material including Graphs and Tables are available on the ifo-website.

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