ZURICH (MaceNews) – Business sentiment in Germany improved slightly in April, as managers viewed current conditions more favorably, according to the latest report from the Ifo institute in Munich.
The Business Climate Index rose to 96.8 from 96.6 in April, the report showed Monday, but failed to meet economists’ expectations for an increase to 97.5, which was the median of an Econoday survey.
A third wave of COVID-19 infections and intermediate products bottlenecks have weighed on the economic outlook for the coming six months.
Ifo’s expectations index fell to 99.5 in April from a revised 100.3 (100.4) in March and was below the Econoday median of 101.3.
Manufacturing is a bright spot for the economy currently, with the business climate rising to the highest value since May of 2018, according to Ifo, while capacity utilization was also higher.
“Capacity utilization rose considerably from 81.9 to 86.2 percent. This brings it above its long-run average of 83.5 percent for the first time in almost two years. However, optimism declined with regard to expectations. Fully 45 percent of companies reported bottlenecks in intermediate products – the highest value since 1991,” Ifo President Clemens Fuest said in a statement.
May Business Sentiment will be released on May 25 at 10:00am CET.
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