Ifo index in Corona times: German economy is becoming more optimistic

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Thyssenkrupp plant in Duisburg: German managers assess the business situation better than before

The mood among German managers is improving: the Ifo business climate index for August rose by 2.2 to 92.6 points, as the Munich-based Ifo Institute announced. "The German economy is on the road to recovery," said Ifo President Clemens Fuest.

It is the fourth increase in a row. However, the pre-crisis level has not yet been reached: in February the index was still at 95.8 points.

The managers surveyed by the Ifo Institute assessed their business prospects and their situation as more favorable than before.

• In the manufacturing sector , the mood is better, therefore, many companies assess their economic situation but still bad. The order books are filling up again, however, with the outlook for the next six months the managers are more optimistic than before.

• The service providers were significantly more satisfied with their current business situation, announced the institute. The outlook also continued to improve.

• The traders have shown a little more satisfied with their current situation, the expectations remain "but virtually unchanged pessimistic". In wholesaling, the business climate even declined.

• In the construction industry , the mood rose when assessing the current situation. The expectations are also a little less pessimistic.

For the business climate index, the institute surveys the managers of around 9,000 companies every month. They are asked to assess their current business situation and how the next six months will be.

In April the index fell to a historic low of 74.2 points. In May and June it had already recovered somewhat in view of the easing of the corona crisis, in July it had risen to 90.4 points.

The economic recovery that went hand in hand with the improvement in sentiment followed an unprecedented economic slump in the spring. The gross domestic product shrank by 9.7 percent in the second quarter. Despite an incipient recovery, rising numbers of infections, travel warnings and concerns about new restrictions are slowing the economy on its way out of the corona recession.

kko / dpa