The Ifo Business Survey in the first half year 2006

The Ifo Business Climate Index continued the upward development that began in spring 2005 also this year. The surveyed firms evaluated their current business situation increasingly more favourably month by month. The business expectations also improved in the first quarter, but in the following months the survey participants became somewhat more reserved regarding future expectations. This correction in the business expectations did not continue in June, however. Even though in some industry and service areas the euphoria regarding the business outlook weakened somewhat, the Ifo Business Climate points to a positive development overall. Also the restrictive employment plans have been clearly relaxed since the beginning of the year. However, this tendency has not continued in recent months.