Ifo Business Survey for August 2005

The business climate in German trade and industry faltered slightly in August, but the indicator is still above the values recorded in March to June. The clouding of the business climate was due to the more unfavourable assessments of the current situation, while the expectations again improved. The manufacturing firms also appraised their export chances a little more optimistically. On the whole, the latest results of Ifo Business Survey point to economic recovery in the coming months though a self-sustained upswing is not yet in sight. In eastern Germany the business climate worsened somewhat more than the average for Germany as a whole.