Recovery in Germany economic outlook continues
In Germany, a recovery was seen in Ifo’s expectation index for the fourth month. A decline was observed in the current conditions index.
Germany’s business outlook rose for a fourth month as confidence grew that the country’s economic recovery will strengthen over the rest of the year.
Ifo institute’s expectation index rose to 90.4 in May. The forecast of economists participating in the Bloomberg survey was for the index to rise to 90.8.
The index measuring current conditions recorded a decline.
In his statement regarding the data, Ifo President Clemens Fuest said, “Companies are less satisfied with their current business situation, but the prospects are better. Although the service sector suffered a slight blow, the manufacturing, trade and construction sectors are recovering. The German economy is trying to get out of the crisis step by step.”
Europe’s largest economy had escaped recession, thanks in part to a benign atmosphere that boosted the construction industry and helped gross domestic product rise 0.2 percent in the first quarter. Other indicators also show that momentum is increasing in other sectors and the recovery is on more solid ground.
According to surveys conducted by S&P Global, private sector activities expanded at the fastest pace in a year in May. While the recovery was again driven by the live services sector, the weakness in the critical manufacturing industry eased.
Consumers are expected to lead a gradual recovery in the coming quarters, benefiting from cooling inflation and strong wage growth.