Ifo Business Survey for February 2008

The business climate in German industry and trade improved in February. The current business situation was classified by the enterprises clearly more positively than in January. Their expectations for the coming half year were again somewhat less confident, however. These results of the Ifo Business Survey again confirm that the economy in the Federal Republic is in a good overall condition but also indicate that the economic dynamics will weaken in the coming months. Increases in hiring will continue in the coming months but at a slower pace. In eastern Germany the business climate worsened. Although the eastern German firms assessed their present business situation more favourably than in January, their expectations are clearly more sceptical.