What do you find easy about business?

in the Manufacturing the business climate improved to its highest level since May 2018. The companies reported a noticeably better course of business. The demand situation is still very good. Capacity utilization increased significantly from 81.9 to 86.2 percent. For the first time in almost two years, it is above the long-term average of 83.5 percent. However, optimistic expectations were dampened. 45 percent of the companies reported bottlenecks in preliminary products. That is the highest value since 1991.

in the Service sector the business climate indicator fell again somewhat after the sharp rise in the previous month. The service providers were a little less satisfied with their current situation. The optimism that had recently emerged has also disappeared again. While the logistics sector is benefiting from the upswing in industry, the hospitality and tourism sectors continue to suffer.

in the trade the business climate has improved slightly. This was due to significantly better assessments of the current situation, especially among car dealers. With a view to the coming months, however, pessimism increased again noticeably. The mood in wholesaling is still better than in retail.

in the Construction the business climate indicator has fallen. The construction companies were a little less satisfied with their current situation. Their expectations continue to be marked by clear skepticism. Here too, many companies reported a shortage of materials.


Clemens Fuest
President of the Ifo Institute

Ifo Business Climate Germany

(Index values, 2015 = 100, seasonally adjusted)


Source: ifo business surveys.
© ifo Institute

Ifo Business Climate Germany and by economic sector

(Balances, seasonally adjusted)

Processing Business-41,4-34,3-23,2-13,3-6,8-1,11,04,29,39,216,524,025,3
Service sector-32,7-20,2-5,91,77,26,63,9-2,9-0,3-4,3-2,16,63,5

Source: ifo business surveys.
© ifo Institute

Dr. Klaus Wohlrabe

Deputy Head of the Ifo Center for Macroeconomics and Surveys and Head of Surveys