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The mood in the German economy is improving
Photo: Mercedes Benz / dpa
The mood in German companies surprisingly improved in April.
The Ifo business climate rose by one point compared to March to 91.8 points, as announced by the Ifo Institute in Munich.
Analysts, on the other hand, had expected a deterioration to 89.0 points.
In March, Germany's most important economic barometer collapsed because of the Russian invasion of Ukraine.
The German economy "is proving resilient," said Ifo President Clemens Fuest.
The mood has stabilized at a low level, said Fuest.
The still pessimistic expectations of the companies brightened noticeably, the current situation was rated hardly better.
The business climate improved in industry and among service providers, while it deteriorated in trade and construction.
Around 9,000 companies answer questions from the Ifo Institute every month for the business climate index.
They are asked to assess their current business situation and their expectations for the next six months.
The decline in March, after the start of the Ukraine war, was not as strong as it was even when the corona pandemic broke out.
experts warn
But experts warn despite the surprisingly positive figures.
"Business expectations in industry are still at levels at which recessions had occurred in the past," said Commerzbank chief economist Jörg Krämer.
Another stress factor is corona lockdowns in Chinese cities.
The consequences of these measures would hit the German economy in the next few months, said Ifo expert Klaus Wohlrabe.
The construction industry, which has been booming for a long time, is also skeptical about the future.
"Less than a quarter of our construction companies expect even higher sales in 2022, while a good 40 percent expect lower sales than in 2021," said Felix Pakleppa, General Manager of the German Construction Industry Association.
»We have a difficult year ahead of us.«
hba/dpa/AFP