Ifo Business Survey for February 2009

The business climate for German trade and industry worsened again in February. The current business situation was evaluated more unfavourably than in January by the survey participants. The worsening of the firms' business situation that has prevailed for months thus continued in February. The six-month business outlook is again regarded less pessimistically by the survey participants. Nevertheless, the expectations of the firms remain basically sceptical. On the whole the survey results do not indicate a turnaround in the business cycle. The Ifo Employment Barometer for industry and trade in Germany in February remained largely at the level of the previous month. The surveyed firms currently do not intend to speed up employment reductions. On the whole, however, the survey responses point to an increase in unemployment in the coming months.