Ifo Business Survey in March 2009

The Ifo Business Climate Index for German trade and industry fell further in March. The firms reported a worsening of the current business situation. However, with regard to business developments in the coming six months they are again less pessimistic. The surveyed participants do not reckon with a noticeable improvement of the business situation, however. According the surveyed firms, the economy has not yet bottomed out. In manufacturing the indicator remained stable while it deteriorated in wholesaling and retailing. The business climate improved in construction. Hopes based on the economic stimulus packages may have had a positive effect. In consumer-oriented retailing, wholesaling of consumer goods and the production of consumer goods, no major improvement was evident. In addition the exporting firms in manufacturing expect a further degradation of their foreign business. The Ifo Employment Barometer for German trade and industry fell noticeably in March. Especially the industrial firms plan to reduce their personnel and make more extensive use of shorter working hours.