The Ifo economic index unexpectedly stalls.
The atmosphere in the German economic territory is relatively stationary. The Ifo business environment stood still at 89.3 points in May, as the Munich Ifo Institute reported in its study of about 9,000 management personnel. Previously, the indicator had risen three times consecutively.
Different experts who were polled by Reuters anticipated an increase to 90.4 points. Businesses evaluated their current business situation less positively than before, but their forecasts for the forthcoming periods more favorably. "Germany's economy is steadily bouncing back from the slump," said Ifo President Clemens Fuest.
The economy got away from a recession at the beginning of the year due to an upsurge in exports and construction spending. From January to March, it increased by 0.2 percent, the same rate as not in the past year. The Bundesbank and various specialists estimate that the recovery will continue in the present second quarter. To accelerate the recovery, private consumption would need to assist - most notably due to the declining inflation.
In general, the gross domestic product - which is the accumulation of all created goods and services - is projected to climb by 0.3 percent. However, the German Industry and Commerce Association (DIHK) anticipates, according to a poll of over 24,000 companies from all sectors and regions, an unchanged state.
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The unexpected stall in the Ifo economic index might indicate an impending crisis if it continues step by step. To mitigate potential economic challenges, businesses should closely monitor the Ifo economic index and adapt their strategies accordingly.
Source: www.ntv.de
