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Laboratory of the IT service provider Datev: Less skeptical than before
Photo: Daniel Karmann / picture alliance / dpa
The mood in the German economy brightened up surprisingly in May.
The Ifo business climate index rose from 91.9 in April to 93.0 points and thus for the second time in a row, as the Munich Ifo Institute announced on Monday in its survey of around 9,000 top managers.
Economists surveyed by the Reuters news agency, on the other hand, had expected a decline to 91.4 points.
"The German economy is proving to be robust despite inflation concerns, material shortages and the war in Ukraine," said Ifo President Clemens Fuest.
“There are currently no signs of a recession.” Executives were less skeptical about their business situation and prospects than they were recently.
The Russian invasion of Ukraine is causing raw material prices to rise, increasing delivery bottlenecks and increasing uncertainty among companies and consumers.
This is slowing down the economy, especially in industry and construction, while some service providers are gaining confidence as the corona crisis subsides.
Many economists believe that the economy will only grow by around two percent in 2022.
The Association of German Chambers of Industry and Commerce (DIHK) is only anticipating a meager increase of 1.0 to 1.5 percent.
mike/Reuters
