Ifo Business Survey for March 2006

The business climate in German industry and trade improved in March for the fourth time in succession and now has reached a level last achieved in April 1991. The firms especially appraised their current situation more favourably than in the previous month, but also their optimism with regard to the business outlook increased again. In contrast to the "expectation bubble" in the years 2002 and 2003/2004, the business situation is now improving in line with the outlook. This confirms that the economic upturn is continuing to stabilise and gaining in breadth.