April 2012 Ifo Business Climate Index for Germany still on the Rise

Results of the April 2012 Ifo Business Survey

The Ifo Business Climate Index for industry and trade in Germany rose once more in April. Companies’ assessment of their current business situation improved somewhat on a high level, while their six-month business outlook remained unchanged from last month. The German economy is proving resilient.
The business climate in manufacturing improved again on the previous month. The manufacturers surveyed see both their current business situation and their business outlook as significantly more positive. Manufacturers are increasing their capacity utilization. Their recruitment plans are slightly more conservative than last month.
The business climate developed differently at both levels of trade. While the business climate indicator increased minimally in retailing, it fell slightly in wholesaling. Climate components also developed in opposite directions. Retailers report some deterioration in their business situation and an improvement in their business outlook. A greater number of wholesalers, on the other hand, are satisfied with their current business situation, while their expectations clouded over slightly.
In construction the business climate was bleaker. The constructors surveyed report a slightly deterioration in their current business situation. They are also no longer as optimistic about their future business development as last month.
Hans-Werner Sinn
President of the Ifo Institute

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April 2012 Ifo Business Climate Index for Germany still on the Rise