Ifo Business Survey April 2015 in Brief: Upswing in the German Economy Continues

The Ifo Business Climate Index for German trade and industry rose in April. Assessments of the current business situation improved again significantly. Optimistic business expectations, however, were scaled back slightly. The German economy continued to recover. The business climate improved in three to five sectors. The indicator fell in retailing and in the service sector, but rose in construction, manufacturing and wholesaling. The Ifo Employment Barometer remained constant in April. The main driver was once again the service sector, where companies are keen to recruit additional staff. However, the very good situation in manufacturing is gradually being reflected in recruitment behaviour. Firms plan to hire more employees. Wholesalers and retailers are also looking for new staff. Construction is the only sector in which the employment dynamic is fairly constrained. Ifo Export Expectations clouded over slightly in April compared to March. Despite this decline, the majority of companies think that revenues will continue to rise abroad. Automotive manufacturers, as well as companies in mechanical engineering, metal production and processing and the chemical industry expect export business to weaken slightly. Companies in the chemical industry, electrical engineering and food and beverages are looking forward to additional impulses from exports.