The sentiment among German companies has recently shown a slight improvement. The Ifo business climate index rose to 88.6 points in February from 87.6 points in January, according to the Ifo Institute’s announcement on Monday. Observers had anticipated only a marginal increase.
Overall, firms reported greater satisfaction with their current operations, and expectations have also brightened. The institute says these developments signal early signs of economic stimulus.
In the manufacturing sector, the index climbed once more, driven by noticeably better assessments of the present business situation. While expectations cooled somewhat, the order book improved and production plans were revised upward.
The service sector saw an improvement in business climate. Expectations, in particular, have warmed, and providers expressed greater contentment with ongoing operations. The logistics sub‑indicator also posted a significant jump.
In retail, the index dipped slightly as firms judged their current position a bit weaker. Nonetheless, the outlook for upcoming months was modestly revised upward. Wholesale showed modest upward trends, whereas the mood in retail experienced a marked downturn.
The construction industry’s business climate continued to recover, with more positive views on the current situation and on expectations. However, the improvement in the order book has been slow.