ifo Institute’s survey of about 9,000 German businesses revealed Monday that
sentiment among the companies remained unchanged in May.
According to the report, ifo Business Climate Index came in at 89.3 in May,
unchanged from a downwardly revised 89.3 (from 89.4) in April.
Economists had forecast the indicator to rise to 90.4.
The details of the report showed that the headline index's flat performance reflected the companies' decreased satisfaction with their current business situation but brightened expectations. The current situation sub-index dropped to 88.3 this month from an unrevised 88.9 in April. Meanwhile, the gauge measuring companies'
expectations for the coming months increased to 90.4 from a downwardly revised 89.7
(from 89.9) in the previous month. This marked the highest reading since April
2023 (91.3).
On the sector level, the manufacturing, trade, and construction sectors saw a recovery in May, while the service sector took a slight hit.