Economists anticipate a better economic outlook as the Ifo business climate remains relatively stable.
The Ifo Index, analysed by ING's Carsten Brzeski, has revealed mixed results for the German economy. While there were three consecutive months of growth, optimists may be disappointed as the strong economic recovery may still be beyond reach. Brzeski is still positive and expects a pick-up in the future.
DZ Bank's Michael Holstein also remarked on the "somewhat disappointing" outcome. He noted a marked improvement in the overall mood since the beginning of the year, but expressed concerns over the economy's current status. Similarly, KfW's Fritzi Köhler-Geib stated that the "conjuncture tunnel" may have been traversed, indicating a significant improvement.
In the manufacturing sector, companies expressed more satisfaction with their operations and a less pessimistic outlook for the future. However, their order backlog continued to decline. The retail industry saw better business conditions, with significant improvements in both current and future expectations.
The construction sector experienced an improved business climate as well. Even though the outlook remains somewhat pessimistic, businesses seem to be performing better. The order backlog, however, remains a pressing issue. In the service industry, companies assessed their current business situation poorly, but expectations for the future brightened.
In summary, though the Ifo Index showed signs of improvement, there are still concerns regarding strong economic recovery and persistent challenges with order backlogs across different industries.
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- Carsten Brzeski, an economist from DZ Bank AG, shares similar sentiments with other analysts, expressing optimism for a future pick-up in the German economy despite the current challenges.
- In his analysis of the Ifo Index, Brzeski noted that the strong economic recovery may still be beyond reach, despite three consecutive months of growth in the German economy.
- Economists, including Carsten Brzeski, are keeping a close eye on the persistent challenges with order backlogs across different industries, as indicated by the Ifo Index.
- According to Brzeski's analysis for ING, the Ifo Business Climate Index for Germany showed mixed results, with some sectors, like manufacturing and retail, showing signs of improvement while others, such as construction and service, still face challenges.
Source: www.stern.de
