Business sentiment in Germany has brightened in May despite worries about inflation and surging interest rates.
- Meanwhile, expectations were largely unchanged as business owners do not believe the economy is turning around.
- The ifo Business Climate Index jumped to 93.0 points in May after posting 91.9 points in April. The index had been expected to decline as rising input costs were seen weighing on business sentiment.
- The manufacturing index improved significantly as companies expected their current situation to bet better, and their expectations rose significantly.
- The service providers were much more satisfied with their current business, posting a larger rise in the indicator in June 2021.
Trade and construction sector indexes rose in May after improvement in the current business, but a majority of companies were still pessimistic.
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Source: Ifo Institute