The mood of companies in Germany improved slightly in April. This emerges from the current business climate index of the IFO Institute. For this purpose, around 9,000 monthly reports are regularly evaluated by companies. The index rose to 86.9 points, after 86.7 points in March. According to IFO, the companies assessed their current situation more positively, while expectations of future developments have developed more pessimistic. The uncertainty among companies had increased. “The German economy is preparing for turbulence.”
While the business climate in the service sector and the construction industry has improved, it has recently decreased slightly in the areas of processing and trade. The expectations in the trade have become more pessimistic, while at the same time the current situation is rated worse. According to IFO, this negative development is primarily driven by wholesale.