Business confidence in Germany increased in August due to improved expectations among companies, although the economic recovery “remains weak,” according to data released today by the German Institute for Economic Research (Ifo).
The Ifo reported that the business confidence index across Germany rose to 89 points in August, up from 88.6 points in July.
The Ifo Institute compiles this confidence indicator with 9,000 monthly responses from companies in the industrial, services, trade, and construction sectors.
“The assessment of the current situation was worse,” said the institute’s president, Clemens Fuest, during the presentation of the index results.
“The recovery of the German economy remains weak,” he added.
In the industrial sector, business confidence worsened slightly as companies are slightly less satisfied with their current situation and revised their expectations downward, with no signs of order growth yet visible.
However, confidence significantly improved among capital goods manufacturers.
In the services sector, business confidence deteriorated slightly because companies’ expectations became more cautious, despite the much-better assessment of the current situation.
Business confidence improved among architecture and engineering firms.
Similarly, business confidence declined slightly in trade, with entrepreneurs indicating a deterioration in their current situation.
In construction, business confidence fell after many months of stability, as companies are less satisfied with their current situation, although they have improved their outlook for the coming months.
