Skip to content

German business confidence recovers after 6 months of decline

| Breaking News Updates | Fox News

A closely watched survey shows that business confidence in Germany, Europe’s biggest economy, has unexpectedly recovered after a six-month decline

BERLIN — Business confidence in Germany, Europe’s largest economy, has unexpectedly rebounded after a six-month decline, a closely watched survey showed on Tuesday.

The Ifo institute said its monthly confidence rose from 94.8 in December to 95.7 points in January. Economists had forecast another slight drop to 94.5.

The index was led higher by much improved expectations for the next six months. Managers’ assessment of the current situation, the other element of the survey, has deteriorated slightly.

Ifo said manufacturing executives’ confidence had increased significantly as supply bottlenecks eased slightly. He said service sector managers were also more optimistic that “the tourism industry is expecting a promising summer” – although, for now, hospitality “remains stuck in crisis”.

Germany is seeing a sharp rise in new coronavirus infections as the highly contagious omicron variant takes hold, although so far this has not been accompanied by a massive increase in hospital admissions .

Chancellor Olaf Scholz and Germany’s 16 state governors decided on Monday to keep existing coronavirus restrictions in place, but not to impose new ones at this time. The health minister has said he expects the number of cases to peak in mid-February.

The German national statistics office estimated that production in Germany fell by 0.5% to 1% in the last quarter of last year. Forecasts are also fragile for the first three months of this year, raising the possibility of a technical recession.

The Ifo survey is based on responses from around 9,000 companies in various industries.

German business confidence recovers after 6 months of decline

| Business Top Stories Today Headlines
ABC News

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.