Ifo Business Survey for July 2009

The Ifo Business Climate for German trade and industry improved again in July. For the first time in more than a year the firms appraised their current business situation as clearly less unfavourable – in April the slight improvement in the business situation was reversed again in the following month. The survey participants view the six-month business outlook less critically. The economy is gaining traction, but an end to the downturn is still not yet foreseeable. The situation on the labour market will remain critical in the months ahead. There is also the danger that future economic activity will be hampered by banks’ lending policies.