Ifo Institute: “German companies are in the dark”

The IFO Institute explains that the lack of predictability of business developments is considered an indicator of economic uncertainty. According to the results of an economic survey by the institute, 28.3% of the companies surveyed stated in April, the planning was “difficult” for them. In March this value was still 24.8%. “More and more companies are currently in the dark when it comes to their own future,” says Klaus Wohlrabe, head of the ifo surveys. “The main driver is the intolerance with the USA. Positive impulses such as the negotiated coalition paper of the new government have so far not been able to compensate for this.”
Especially in industry, uncertainty was particularly striking at 38.7%. The proportion increased by 11%. The electrical industry and automotive construction, with over 45%, are particularly unsettled by industry. Around a third of the companies reported a difficult situation in the trade. “The companies now need predictability,” says Wohlrabe. “The longer the uncertainty continues, the sooner investments and new settings are postponed.”

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