Recovery: Industry, construction and trade in Germany have increased their sales for the third month in a row. The first companies are hiring again
Photo: Axel Heimken / DPASignificant economic recovery in Germany after the Corona crash: Industry, construction, trade and service providers increased their sales in July for the third month in a row. The commercial economy together took 1.9 percent more than in the previous month, as the Federal Statistical Office announced on Thursday. The sales adjusted for distorting seasonal and calendar influences are still 5.0 percent lower than in February 2020, the month before the start of the restrictions due to the corona pandemic in Germany.
The chances are good that the recovery will continue. A V-shaped recovery after the spring crash is still possible in Germany. The mood in the boardrooms of German business also brightened in August for the fourth month in a row, according to a survey by the Ifo Institute among 9,000 companies.
The race to catch up follows an unprecedented economic slump in the spring of 9.7 percent. Rising corona infection numbers, travel warnings and, last but not least, the risk of a wave of bankruptcies continue to cast a long shadow on the economy.
Some companies are already hiring again
According to a survey by the Ifo Institute, German companies are reducing their dismissal plans. After the companies had laid off workers in the past few months, "the first signs of new hires are now visible," said the research institute on Thursday. "A trend reversal is imminent on the German labor market."
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The employment barometer determined by the Ifo rose in August from 93.2 points to 95.4 points. In the industry, the barometer increased significantly. Nevertheless, according to the survey, more companies want to lay off employees than hire them. There are first signs of new hires in the service sector; New employees are therefore being sought, especially in the IT sector.
According to the survey, retailers are still reluctant to look for staff and tend to expect layoffs. Only in the construction industry is there currently hardly any dynamism in employment development.
The Ifo Employment Barometer is based on around 9,000 monthly reports from companies in the manufacturing, construction, wholesale and retail and service sectors. Companies can mark their plans for the number of employees for the next three months as "increasing", "staying the same" or "decreasing".
la / dpa / reuters
