The mood among German companies has brightened considerably in July. The business climate index of the Ifo Institute rose compared with the previous month by 4.2 points to 90.5 counter. The Munich-based Institute said on Monday.Analysts had expected a somewhat weaker rise. The Barometer is based on the monthly survey of 9000 companies in all industries and is regarded as an important indicator for the local economy.
It is the third rise in the indicator in a row after he was charged in April by the Corona-crisis –to a record low of 74.3 points. Especially their prospects for the future, the company assessed better. But also the assessment of the current situation improved in all sectors, both in industry and in the service sector, trade and construction."The German economy is recovering gradually," commented the President of the Ifo Institute, Clemens Fuest.
The opinion of other Economists."A three-time business climate change in the same direction of the signaled turn of the trend –this is the well-known rule of thumb in Germany is now finally on the road to recovery," says fritzi Köhler-Geib, the chief economist of the KfW."The economic start in the summer quarter are to be done." It is expected that the growth of the gross domestic is likely to be the product in the third quarter of exceptionally strong; a first flash estimate by the Federal Statistical office shall submit to this week Thursday.
"Before the end of 2022, no return on this level,"
"The Ifo business climate index rises for the third Time in a row, and the business expectations are even so positive as it has been since around 1.5 years. This shows that the German economy is convinced that in the Corona-crisis the worst is over and it will go in the third quarter, sharply up,“ adds Michael Holstein, DZ Bank.The companies were, however, a good piece from the "normal state" removed. The current business situation, they were still very weak and the recovery is expected to take some time.
"The companies are significantly less confident than the stock markets. The mood is improving, but only portly,“ warns Alexander Krüger of the Bankhaus LAMPE. He thinks caution is appropriate: The Corona-pandemic collection currently, new power, and the conflict between China and America will be a burden."Still, companies with sales failures, which complicates the operation of the increase in the debt fight. Also noticeably missing from public contracts for the construction industry. It is not surprising, therefore, that the current business situation will continue to be rated as extremely difficult, and the hopes for the future,“ says Kruger.Updated Date: 27 July 2020, 20:19