(Ifo Institute) The ifo business climate index of Germany’s economy was recorded at 93.0 points in May, up from 91.9 points in April.
A gauge of expectations also came better than expected, with the index rising slightly to 86.9 in May, compared to 86.8 in April. The index was expected to fall marginally.
In the manufacturing sector, the index improved noticeably, with expectations also rising substantially. The service sector also posted improvements, although expectations worsened.
In trade, the gauge of the current situation rose after declining two times in a row. The index for expectations rose slightly, but firms remained in the pessimism zone over the future. Construction recovered from an April crash, but firms remained less optimistic.
The improved sentiment happens amid growing concerns from the Ukrainian war inflation and the supply chain bottlenecks which had hit the German economy. The concerns had raised fears of a recession.
Ifo President Clemens Fuest said that Germany’s economy remains resilient. Fuest said that the economy now faces no “observable signs of a recession.”
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