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Engineer in production at Siemens: The industrial group also recently feared longer delivery times due to a shortage of materials
Photo: Rupert Oberhäuser / imago images
"The German economy is picking up speed": This is how Ifo President Clemens Fuest sums up the current economic survey conducted by his institute.
The Ifo researchers have determined that the mood in Germany's companies has not been as good as it has been for two years - thanks in part to the progress made in vaccination.
The Ifo business climate index climbed from 96.6 points in the previous month to 99.2 points, as the Munich economic research institute announced.
Economists had only expected 98.2 points.
Companies are also much more optimistic about the coming months - especially in the service sector and in retail.
In the manufacturing sector, however, the mood rose only slightly, and in the construction sector, too, the mood only brightened a little.
The problem of material shortages has worsened again, said Fuest.
There are currently delivery bottlenecks for many raw materials and intermediate products - among other things due to pandemic-related problems in international trade.
Dependent on impulses from China and the USA
In the service sector, the Ifo survey achieved the highest value since February 2020.
Expectations in the tourism and hospitality sector exploded in May, said Ifo expert Klaus Wohlrabe: "There is hope for good summer business here."
The index also made significant gains in trading: traders were more satisfied with their current business situation.
In addition, according to Ifo, a "cautious optimism" returned to expectations.
"While wholesalers continue to benefit from the good industrial economy, retailers are hoping for further easing," said Ifo President Fuest to the survey, for which the institute asks around 9,000 companies every month.
They are asked to assess their current business situation and to state their expectations for the next six months.
According to the Bundesbank, the German economy is currently recovering quickly after the latest Corona slump.
The gross domestic product (GDP) should therefore increase significantly again in the second quarter.
At the beginning of the year, however, due to the corona-related slump in consumption, GDP had shrunk more than initially assumed - by 1.8 percent.
KfW chief economist Fritzi Köhler-Geib commented on the development that the third corona wave has probably broken and the mood in the companies is rising in line with the progress in vaccination.
In general, however, the brightening of the mood should still be interpreted with caution, warned chief economist Alexander Krüger from Bankhaus Lampe.
Supply chain problems persist and, more than before the crisis, the economy is initially dependent on stimulus from China and the USA.
apr / Reuters
