Germany Ifo Index Rises in March to Highest Level Since June 2019

26 March, 2021

By David Barwick – FRANKFURT (Econostream) – German business confidence increased strongly and on a broad base in March, economic research institute Ifo said on Friday.

The German Ifo business climate index rose 3.9 points to 96.6, its highest level since June 2019. Companies survey were both happier about their current situation and more optimism about the future, the institute said.

‘Despite the rising rate of infections, the German economy is entering the spring with confidence’, the institute remarked.

In the manufacturing sector, where demand ‘rose appreciably’, companies were more optimistic than at any time since November 2010, the Ifo institute reported. ‘The indications are for recovery across all industries’, it said.

Although some parts of the service sector continued to suffer, the overall climate there improved markedly, with optimism returning for the first time since last autumn, Ifo said.

The subindex for the trade sector surged on sharp rises for the current situation as well as expectations, according to Ifo.

The mood among construction companies was also better, with assessments of the current situation at the most positive level in a year, while expectations were up as well.