ifo Business Climate Index Rises Sharply (June 2021)
Sentiment among German managers has improved markedly once again. The ifo Business Climate Index rose from 99.2 points in May to 101.8 points in June. Companies assessed their current business situation as much better. Optimism regarding the second half of the year also grew. The German economy is shaking off the coronavirus crisis.
Download
In manufacturing, the index rose to its highest value since April 2018. Companies were notably more satisfied with their current business. Their expectations were somewhat less optimistic. Developments were generally very good across all industries, but especially for manufacturers of machinery and equipment and for the electrical and electronics industry. Many companies are concerned about increasing bottlenecks in intermediate products.
In the service sector, the Business Climate Index jumped higher. The indicators for the current situation and for expectations both rose appreciably. The logistics sector and IT service providers reported particularly good business. Service providers are expecting strong sales growth, even in the crisis-stricken hospitality industry.
In trade, the easing of restrictions improved the business climate greatly. This was due to a marked improvement in current business. Expectations also turned more optimistic. Sentiment rose particularly steeply in retail. Never has the indicator for the current situation seen such a steep rise.
In construction, the index rose a little. Assessments of the current situation were almost unchanged. Expectations improved, but remained pessimistic. Material shortages continue to pose major problems.
Clemens Fuest
President of the ifo Institute
ifo Business Climate Germany
(Index, 2015 = 100, seasonally adjusted)
06/20 | 07/20 | 08/20 | 09/20 | 10/20 | 11/20 | 12/20 | 01/21 | 02/21 | 03/21 | 04/21 | 05/21 | 06/21 | |
Climate | |||||||||||||
Situation | |||||||||||||
Expectations |
Source: ifo Business Survey.
© ifo Institute
ifo Business Climate Germany and by Sector
(Balances, seasonally adjusted)
06/20 | 07/20 | 08/20 | 09/20 | 10/20 | 11/20 | 12/20 | 01/21 | 02/21 | 03/21 | 04/21 | 05/21 | 06/21 | |
Germany | |||||||||||||
Manufacturing | |||||||||||||
Service Sector | |||||||||||||
Trade | |||||||||||||
Construction |
Source: ifo Business Survey.
© ifo Institute