German business sentiment in Germany has not changed much recently. The Ifo Business Climate Index stood at 85.2 points in February, the same as in January, according to the Ifo Institute, which reported the data on Monday.
Companies were slightly less satisfied with their current business, but their expectations brightened somewhat. Overall, the German economy is waiting, the institute said.
The manufacturing sector saw an improvement in the business climate. While the current situation was assessed as slightly worse, companies were much less pessimistic about the coming months. The order development has stabilized.
In the service sector, the index declined, however. Companies were less satisfied with the current situation and their expectations also darkened. In particular, there was an increase in skeptical voices in the transportation and logistics sector.
Retail trade, on the other hand, saw an improvement in the business climate, mainly due to a brightening of expectations. Companies also evaluated their current economic situation more positively, a development observed in both the wholesale and retail trade.
The construction industry also saw an improvement in the business climate, driven by less skeptical expectations. However, the current business was assessed as slightly worse. A central problem remains, according to the institute, a lack of orders.
The Ifo Business Climate Index is considered an important early indicator of the economic development in Germany. It is based on around 9,000 monthly reports from companies in the manufacturing, service, trade and construction sectors. Companies are asked to assess their current business situation and report their expectations for the next six months.