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Material Shortages Continue to Ease in German Manufacturing
German manufacturing is facing fewer and fewer problems with material shortages. In July, 29.5% of the companies surveyed reported shortages, down from 31.9% in June. “The situation has been easing steadily for more than a year,” says Klaus Wohlrabe, Head of Surveys at ifo, “although bottlenecks still exist for some electronic components.”
ifo Export Expectations Rise (November 2021)
Sentiment in the German export industry has improved. In November, the ifo Export Expectations rose to 15.8 points, up from 13.1 points in October, having stood at 20.6 points in September (seasonally adjusted). Despite supply problems for intermediate products and raw materials, the German export industry is in a robust position.
ifo Business Climate Index Rises (November 2023)
Sentiment among German companies has improved slightly. The ifo Business Climate Index rose to 87.3 points in November, up from 86.9 points in October. This is its third consecutive increase. Companies assessed their current business situation as somewhat better. Expectations for the coming months were also less pessimistic. The German economy is stabilizing, albeit at a low level.
Economic Experts Survey: Confidence Particularly in Political Stability (1st Quarter 2023)
In the 1st quarter of 2023, Europe and South America in particular were much more critical about overcoming economic policy challenges than in the previous quarter. A similar picture can also be seen in the assessment of political performance in these regions. In contrast, the perception in North and Central America, large parts of Asia, and East and West Africa is that both economic policy and the political situation have improved. With a few exceptions in Southern Europe, experts worldwide see a noticeable improvement in political stability in their home countries.
ifo Export Expectations Rose Considerably (May 2020)
After a catastrophic April, sentiment among German exporters has recovered somewhat. In May, the ifo Export Expectations for manufacturing rose from minus 50.2 points to minus 26.9 points. Although this sharp increase is unprecedented, companies are still far from optimistic. However, the German export industry does see a silver lining on the horizon.
ifo Economic Forecast Autumn 2021: Supply Bottlenecks in Manufacturing Slow Overall Economic Recovery
Gross domestic product for Germany is expected to grow by 2.5 percent in 2021 and by 5.1 percent next year. The high growth rate in 2022 is largely due to the low level of production of goods and services in 2021. In 2023, the German economy will then expand again at normal rates.
ifo Business Climate Index Saxony Falls Slightly (June 2022)
The ifo Business Climate Index Saxony dropped slightly in June. The barometer of business sentiment in Saxony’s economy fell to 94.7 points, down by 0.3 points from May. The change was driven by worsening business expectations. Meanwhile, assessments of the current situation among companies in Saxony remained largely the same.
Improved Sentiment among the Self-Employed in Germany
Sentiment among the self-employed in Germany has improved. The Business Climate Index rose to -14.6 points* in February, up from -22.6 points* in January. This is a finding from the latest ifo survey for this segment (“Jimdo-ifo Business Climate Index for the Self-Employed”). The rise was due to less pessimistic expectations. However, the self-employed are particularly dissatisfied with their order backlog, which continues to shrink. “This segment is still far from optimistic,” says ifo expert Katrin Demmelhuber.
Business Climate for Self-Employed Turns Even More Negative
The business climate for Germany’s self-employed has deteriorated. This is a finding by the latest ifo survey for this segment (“Jimdo-ifo Business Climate Index for the Self-Employed”). The index fell from -3.2 points in April to -8.6 points in May. “The business community’s worry lines are deepening,” says ifo expert Katrin Demmelhuber. “Not enough new orders are coming in at present.”
ifo Export Expectations Fall Slightly (February 2023)
Sentiment among German exporters has worsened somewhat. In February, the ifo Export Expectations slipped to 3.8 points, down from 4.1 points in January. Weak global demand is currently dampening hopes for German exports.
ifo Business Climate Eastern Germany Cools Again Slightly (September 2023)
The ifo Business Climate Index Eastern Germany saw a small decline in September. The barometer of business sentiment for the entire regional economy slipped to 89.6 points, down from 90.4 points in August. The eastern German companies surveyed reported slightly worse business than in the previous month and lowered their expectations somewhat for the months ahead.
For More Transparency: German Bundestag Tightens Rules on Supplementary Income for Members of Parliament
Members of the German Bundestag receive compensation to the tune of EUR 10,083.46 per month. According to Germany’s Basic Law, or Grundgesetz, this is to ensure their independence while also doing justice to the special responsibility and burden they carry. On June 11, 2021, the Bundestag voted to tighten the rules on supplementary income for members of parliament. From now on, MPs must declare the exact amount of supplementary income, starting at an annual amount of EUR 3,000 (or EUR 1,000 per month). Paid consulting and lobbying activities as well as lecture fees will also be prohibited in the future. The 34th ifo and FAZ Economists Panel looks at the compensation and supplementary income of German parliamentarians. A total of 146 professors at German-speaking universities participated.
Economic Experts Survey: Political Climate Deteriorating Worldwide (Q1 2022)
The global economic situation remained tense in Q1 2022. The coronavirus pandemic regained momentum in many countries through the Omicron variant and led to significant restrictions on economic activity. The geopolitical break caused by the Russian invasion of Ukraine on February 24, 2022, is also affecting the global political and economic climate. The Economic Experts Survey (EES), a quarterly survey conducted by the ifo Institute and the Swiss Economic Policy Institute, captures the assessments of international economics experts on the current economic policy and the political climate. 1,603 economic experts from 132 countries participated in the survey, which ran from February 16, 2022, to March 2, 2022.
Banks Slightly Less Reluctant to Lend to Companies in Germany
It has become slightly easier for German companies to obtain new loans. In December, 25.6% of companies in ongoing credit negotiations reported restraint on the part of banks; in September, that figure was 29.2%. “However, the banks remain cautious when it comes to lending,” says Klaus Wohlrabe, Head of Surveys at ifo.
ifo Business Climate Eastern Germany Rises Further (May 2024)
The ifo Business Climate Index for Eastern Germany rose slightly in May. The barometer of business sentiment for the regional economy in eastern Germany climbed to 92.8 points, up from 92.2 points in April. The eastern German companies surveyed provided assessments of their business situation that were somewhat better than the previous month, and they raised their business expectations slightly. The upward trend continues.
ifo Business Climate Index Rises (September 2020)
Sentiment among German managers has further improved: the ifo Business Climate Index climbed to 93.4 points in September, after 92.5 points in August. The companies once again assessed their current situation as better than in the previous month. They also expect their business to recover further. The German economy is stabilizing despite rising infection numbers.
Personnel and Salary Developments in 2023 and Feedback Culture in Companies (4th Quarter 2022)
In the fourth quarter of 2022, the Randstad ifo Personnel Manager Survey covered wage developments in 2023 and special payments in the form of the inflation compensation bonus. This bonus is part of the German government’s third relief package, which is intended to offer citizens relief in times of high energy prices and inflation rates. The bonus is tax-free up to an amount of EUR 3,000 until the end of 2024. Other topics included personnel development in 2023 and the feedback culture in companies.
Joint Economic Forecast Autumn 2020: Recovery Loses Momentum – Economy and Politics Still Shaped by the Pandemic
After a 5.4 percent decline in gross domestic product this year, the institutes expect growth of only 4.7 percent next year and 2.7 percent in 2022.
Business Climate in Germany’s Automotive Industry Continues to Deteriorate
Germany’s automotive industry views its current business situation as worse than in the previous month, according to the ifo Business Survey. The indicator fell to 12.7 points in August, down from 22.1 points* in July. “Sentiment has deteriorated most noticeably among automakers, while suppliers remain fairly satisfied with their current situation,” says Anita Wölfl, a specialist at the ifo Center for Industrial Organization and New Technologies.
ifo Employment Barometer Rises Notably (March 2021)
German companies are increasingly looking to hire new employees. The ifo Employment Barometer rose sharply in March to 97.6 points, up from 94.5 points in February. This is its highest level since February 2020. The labor market is starting to recover, despite the lockdown.