The Ifo researchers are relatively pessimistic about the economy this year.
(Photo: dpa)
Berlin The mood in the executive floors of German companies surprisingly brightened in March for the fifth month in a row. The Ifo business climate index rose to 93.3 points from 91.1 points in the previous month, as the Munich Ifo Institute announced on Monday in its survey of around 9,000 executives.
Economists surveyed by Reuters, on the other hand, had expected a slight decline to 91.0 points. “Despite the turbulence at some international banks, the German economy is stabilizing,” said Ifo President Clemens Fuest. Companies were somewhat happier with current business than in February. And expectations for the next six months increased significantly.
The Ifo researchers are relatively pessimistic about the economy this year. Unlike the other large institutes and the German Council of Economic Experts, they do not anticipate slight growth in gross domestic product, but rather a decline of 0.1 percent. Most recently, however, the purchasing manager barometer from the financial services provider S&P had signaled that the economy in Germany had started spring with momentum.
In March it stayed above the growth threshold of 50 points for the second month in a row. This allayed fears of a recession. The Kiel Institute for the World Economy (IfW) predicts growth in gross domestic product of 0.2 percent for the quarter that is coming to an end, and the IWH in Halle is also expecting an increase.
In the fourth quarter of 2022, Europe’s largest economy had shrunk by 0.4 percent. With two negative quarters in a row, economists speak of a technical recession.
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