German business sentiment improves in December - Ifo
By Michele Maatouk
Date: Friday 18 Dec 2020
(Sharecast News) - German business sentiment improved in December despite Covid-19 restrictions, according to a survey released on Friday by the Ifo Institute.
The business climate index rose to 92.1 from 90.9 in November, beating expectations for a reading of 90.0.
The current situation index printed at 91.3 compared to 90.0 the month before, and the expectations index ticked up to 92.8 in December from 91.8 in November.
The manufacturing index rose to 8.9 from 4.0, while the services sector gauge improved to -0.4 from -3.1. The construction index was stable at -0.5 and the trade index came in at 0.3 versus -4.0 in November.
Ifo president Clement Fuest said: "Companies were more satisfied with their current business situation. They were also less sceptical about the coming six months. While the lockdown is hitting certain sectors hard, overall the German economy is showing resilience."
Capital Economics said the increase in the Ifo business climate index supports its view that Germany will avoid a contraction in the fourth quarter.
"But the new tightening in coronavirus restrictions, which came into effect this week, means that activity will remain subdued at the start of the new year, before picking up in the second quarter," it said.
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