Latest news with #ifoBusinessClimateIndex
Fibre2Fashion
a day ago
- Business
- Fibre2Fashion
German business sentiment rises slightly in July: ifo
The ifo Business Climate Index edged up to 88.6 points in July, compared to 88.4 in June, indicating a slight improvement in sentiment among German companies. Companies were somewhat more satisfied with their current business situation, while expectations remained largely unchanged. The upturn in the German economy remains sluggish. Manufacturing sentiment strengthened in July, with the balance improving from -13.9 to -11.8. Companies assessed their current situation as noticeably better, with expectations continuing to brighten. Yet, incoming orders still lack momentum, and capacity utilisation increased only marginally from 77 to 77.2 per cent, according to the ifo Institute. Germany's ifo Business Climate Index rose slightly to 88.6 in July from 88.4 in June, reflecting modest improvement in sentiment. Manufacturing sentiment improved, though incoming orders remained weak. Capacity utilisation edged up to 77.2 per cent. Trade sentiment declined due to pessimistic expectations. Overall, the current situation index rose to 86.5, while expectations inched up to 90.7. 'In trade, the index weakened somewhat due to more pessimistic expectations. Although the current situation improved slightly, it remained unsatisfactory,' said Clemens Fuest, president of the ifo Institute . The sector's balance declined to -20.2 in July from -19.2 in June. Overall, the assessment of the current situation improved to 86.5 from 86.2, while business expectations edged up to 90.7 from 90.6, continuing their steady upward trend since the start of 2025. Fibre2Fashion News Desk (SG)
The Star
4 days ago
- Business
- The Star
German business sentiment rises, but recovery faces external threats
BERLIN, July 25 (Xinhua) -- Germany's business confidence rose in July to its highest level in over a year, a survey showed Friday. However, economists cautioned that the recovery remains fragile amid persistent external headwinds, including the U.S. tariffs threat. The ifo Business Climate Index, based on a survey of around 9,000 companies, edged up to 88.6 in July from 88.4 in June, marking the seventh consecutive month of improvement. While firms expressed a more favorable view of current business conditions, their expectations for the months ahead remained subdued. Sentiment in the manufacturing sector improved slightly but stayed at relatively low levels. The ifo Institute reported that industrial capacity utilization rose from 70 percent to 77.2 percent, though this still reflects below-average levels amid weak incoming orders. In contrast, the services sector posted a decline, driven in part by a significant deterioration in expectations among IT service providers. Analysts said the downturn may be linked to heightened uncertainty, as the European Union considers retaliatory measures including tariffs or regulatory actions against U.S. technology and digital firms in response to proposed trade actions by Washington. "Companies were slightly more satisfied with current business, but their expectations remained largely unchanged," said ifo President Clemens Fuest. "The upturn in the German economy remains sluggish." Carsten Brzeski, global head of macro at ING Research, described the mood as a "wave of optimism" but warned that the outlook is clouded by trade tensions, a stronger euro, and the threat of U.S. tariffs -- all factors that could weigh on Germany's export-driven economy. A separate ifo survey published Thursday underscored growing concern among German manufacturers. More than 60 percent of 1,500 companies surveyed reported being negatively impacted by the U.S. tariffs, which are set to take effect on Aug. 1 with duties of 30 percent. One-third of respondents said they expect the U.S. market to lose importance by the end of President Donald Trump's term. Trade tensions are already shaping investment decisions: around 30 percent of companies said they had postponed their U.S. expansion plans, while 15 percent had canceled them altogether. Despite the external pressures, Brzeski noted that German companies are increasingly turning their attention to opportunities under the new government's economic agenda. Earlier this week, the German government, in collaboration with major corporations, launched a sweeping investment plan at a business summit in Berlin. Valued at 631 billion euros (739 billion U.S. dollars), the initiative aims to revive Europe's largest economy through 2028, focusing on manufacturing, research and development, and infrastructure construction. (1 euro = 1.17 U.S. dollar)
Fibre2Fashion
02-06-2025
- Business
- Fibre2Fashion
German retail sentiment sees notable uptick in May: ifo
Germany's retail sector saw a notable improvement in sentiment in May, with the ifo Business Climate Index rising to -18.6 points from -25.8 in April. Retailers reported a more favourable assessment of both their current business situation and future expectations. Germany's retail sentiment improved in May as the ifo index rose to -18.6 from -25.8 in April, with better assessments of current conditions and future outlook. Clothing retailers remained more pessimistic. Price pressures eased, with fewer hikes in April and restrained plans ahead. ifo's Hí¶ppner noted improved mood despite concerns over US trade policy. However, clothing retailers continued to view their business climate more negatively than the retail sector overall. Price pressure in the industry has eased somewhat. In April, retailers raised prices less frequently than in the previous month, and they now appear more restrained in their plans for future price increases. 'Retailers are still dissatisfied with their economic situation, but their mood has improved considerably. For the time being, they assume that the economic risks posed by current US foreign trade policy will not weigh significantly on consumer sentiment,' ifo expert Patrick Höppner said in a release. Fibre2Fashion News Desk (HU)
Euronews
25-03-2025
- Business
- Euronews
German business morale surges to 7-month highs on recovery hopes
ADVERTISEMENT Germany's business sentiment rebounded strongly in March, buoyed by renewed momentum in the manufacturing sector and expectations of fiscal stimulus lifting economic prospects. The ifo Business Climate Index rose to 86.7 in March, its highest reading in seven months, from 85.3 in February, broadly matching expectations. The improvement was evenly spread across current assessments and future expectations. The ifo Expectations gauge – a closely watched barometer of sentiment – climbed to 87.7, marking an eight-month high. The ifo Current Condition gauge rose from 85.6 in February to 87.7 in March, also matching forecasts. 'Sentiment among companies in Germany has brightened,' said Clemens Fuest, president of the ifo Institute. 'Companies were more satisfied with their current business situation, and their expectations rose noticeably. German businesses are hoping for a recovery,' he added. In manufacturing, sentiment improved markedly, with expectations turning notably less cautious. Firms also viewed their current situation more favourably, although order books showed a slight decline. The service sector also saw a rise in business confidence. Companies expressed a more positive outlook and a clearer sense of optimism, especially among architectural and engineering firms. In the trade sector, sentiment strengthened again. Traders were less pessimistic about future prospects and assessed their current business situation more positively. The construction sector experienced a more upbeat mood. Firms had a slightly better view of current conditions, and expectations improved, though scepticism remains high. Yet, a persistent shortage of orders continues to weigh heavily on the industry. Manufacturing leads rebound On Monday, encouraging signs emerged from S&P Global's flash Purchasing Managers' Index (PMI), which showed Germany's overall business activity rising at its fastest pace in ten months. The Germany Composite PMI Output Index rose to 50.9 in March from 50.4 in February, the highest since May 2024. The increase was driven by a sharp recovery in manufacturing output, which expanded at the strongest rate in three years, with the output sub-index hitting 52.1. This marked the first sustained uptick in manufacturing production since early 2022. Stronger domestic demand and efforts by clients to rebuild inventories were cited as key contributors. New manufacturing orders increased – albeit modestly – for the first time in two years. Related Germany's parliament passes historic package boosting defence spending Eurozone business activity rises as Germany's manufacturing rebounds "Manufacturers have ramped up production for the first time in nearly two years," said Dr Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank. He noted that Germany's recently approved €500 billion infrastructure and defence investment plan was helping restore business confidence. 'This could mark the beginning of a more sustained recovery,' de la Rubia added, while warning that US tariff policies and weak services performance remained potential headwinds. Services lose momentum While the manufacturing sector showed clear signs of revival, the services sector cooled. The services PMI slipped to 50.2, indicating near-stagnant activity and its weakest performance in four months. New business in the sector declined sharply, and service providers struggled to pass on higher costs through price increases. ADVERTISEMENT Nevertheless, sentiment improved across both sectors, with firms reporting increased optimism for output in the coming months. Analysts attributed part of the boost in morale to the expected impact of Germany's fiscal stimulus package, which is set to support infrastructure projects and potentially revive demand across both manufacturing and services. DAX rises as Trump tariff stance weakens Markets responded positively to the improving sentiment. The DAX index rose 0.8% in morning trading on Tuesday, buoyed by global optimism after US President Donald Trump hinted at a softer approach to upcoming tariffs. At a White House briefing on Monday, Trump said 'a lot of countries' might receive tariff exemptions and added that not all tariffs will take effect on 2 April. He indicated that US levies would still target certain sectors, including lumber, automobiles and pharmaceuticals. Bayer AG shares rose 4%, leading gains on the DAX, followed by BMW AG (+1.6%) and Deutsche Börse (+1.5%). Sartorius AG and Siemens AG underperformed, falling 2.4% and 1.7%, respectively. ADVERTISEMENT Elsewhere in Europe, the Euro STOXX 50 climbed 0.4%, Italy's FTSE MIB rose 0.8% and Spain's IBEX 35 gained 0.9%. The Euro STOXX Bank Index added 0.5%, lifted by a 2.3% gain in Crédit Agricole and a 1.8% increase in ABN Amro.
