(News Bulletin 247) – The business climate improved in Germany in February, a sign that Europe’s leading economy should avoid the worst this winter, shows the index published on Wednesday by the Ifo institute.
Its business climate indicator, based on a survey of 9,000 companies, rose to 91.1 points this month, from 90.1 in January, in line with consensus expectations.
While the current conditions component is down to 93.9 from 94.1 the previous month, the expectations component is up from 86.4 to 88.5 in February.
In a reaction note, Commerzbank analysts explain this improvement by the fact that German companies are relieved by the recent drop in energy prices and especially by the absence of a gas crisis.
“But the slightly lower assessment of the current business situation gives food for thought,” said the banking establishment.
‘Companies are seeing that incoming orders have been down since the spring. After all, the central banks of many countries have had to massively increase their key rates,’ analysts point out.
Commerzbank thus says it anticipates a scenario of an economic ‘trough’ for Germany, but not that of a so-called ‘classic’ recession.
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