Dr. Klaus Wohlrabe

Constantin Bürgi und Klaus Wohlrabe

Klaus Wohlrabe

Werner Hölzl und Klaus Wohlrabe

The order shortage in residential construction in Germany has eased slightly, as reported by 50.2% in June, down from 51.7% in May. “The lack of new orders continues to be a major problem. House builders are cautious, partly because the European Central Bank’s key interest rate cut is only a first step for the time being. Not much has changed as yet with regard to financing costs, as is also reflected in the trend in building permits,” says Klaus Wohlrabe, Head of Surveys at ifo.

German companies have somewhat more difficulty obtaining new loans, according to surveys by the ifo Institute. In June, 27.1% of companies in ongoing credit negotiations reported restraint on the part of banks; in March, the figure was 25.2%. Caution rose particularly sharply in the construction industry and manufacturing. “In view of weak investment in Germany, easier access to loans would be desirable,” says Klaus Wohlrabe, Head of Surveys at ifo.

Companies in Germany are looking to hire less staff. The ifo Employment Barometer fell to 95.9 points in June, down from 96.3 points in May. “A lack of orders is deterring many companies from expanding their workforce,” says Klaus Wohlrabe, Head of Surveys at ifo. “If anyone, it’s service providers who are tending to hire new employees.”

Le moral des exportateurs allemands s’est légèrement dégradé. L’indice ifo des prévisions en matière d’exportations a chuté, passant de + 0,2 point en mai à – 1,0 point en juin. « Actuellement, aucune tendance claire ne se dégage, mais il y a encore du potentiel à exploiter au niveau des exportations », indique Klaus Wohlrabe, responsable des enquêtes de l’Institut ifo.

Sentiment in the German export industry has deteriorated slightly. The ifo Export Expectations fell to -1.0 points in June, down from +0.2 points in May. “No clear direction is currently emerging,” says Klaus Wohlrabe, Head of Surveys at ifo. “The export economy still has plenty of room for improvement.”

Sentiment has deteriorated at companies in Germany.The ifo Business Climate Index declined in June to 88.6 points, down from 89.3 points in May. This was due to more pessimistic expectations. However, the assessments of the current situation remained unchanged. The German economy is having difficulty overcoming stagnation.

 Le moral des dirigeants d’entreprise allemands s’est dégradé. L’indice ifo du climat des affaires a
reculé de 89,3 points en mai à 88,6 points au mois de juin en raison d’une dégradation des attentes. L’évaluation de la
situation actuelle n’a en revanche pas évoluée. L’économie allemande a du mal à sortir de la stagnation.

The business climate index in residential construction in Germany has risen significantly, but the majority of companies remain pessimistic. Its index managed to climb from -52.3 points to -46.4 points. Expectations and the situation improved at a very low level. “Housebuilders are hoping that the worst of the economic downturn is behind them,” says Klaus Wohlrabe, Head of Surveys at ifo. “But the road to recovery is still long.”

Sentiment in the German economy has barely improved during World Cups and European Championships. “At the time of the 2006 World Cup in Germany, there was initially a sense of anticipation in the ifo economic surveys. In the 6 months before the World Cup, the probability of ‘better business’ in the coming months rose by 1.1%,” says Klaus Wohlrabe, Head of Surveys at ifo. “After the World Cup, German companies actually found their business situation slightly better, with the probability of ‘good’ increasing by 1.1%. During and after the World Cup, however, there were no more effects on expectations,” he adds. “We suspect something similar now for the European Championship.”

Le moral des entrepreneurs allemands s’est à peine amélioré lors des Coupes du monde et des Championnats d’Europe de football.  « Lors de la Coupe du monde 2006 en Allemagne, les enquêtes conjoncturelles de l’institut ifo ont d’abord montré un certain optimisme. Au cours des 6 mois précédents, la proba-bilité de “meilleures affaires” dans les mois à venir a augmenté de 1,1 % », ex-plique Klaus Wohlrabe, responsable des enquêtes de l’institut ifo « Après la Coupe du monde, les entreprises ont effectivement estimé que leur situation s’était un peu améliorée, la probabilité qu’elle soit “bonne” ayant augmenté de 1,1 %. Mais pendant et après la Coupe du monde, il n’y a plus eu aucun effet sur les attentes », ajoute-t-il. « Nous pensons qu’il en sera de même pour l’Euro. »

The willingness among companies in Germany to hire new staff has increased slightly. The ifo Employment Barometer rose to 96.3 points in May, up from 96.0 points in April. “Demand for workers remains rather weak,” says Klaus Wohlrabe, Head of Surveys at ifo. “Those companies that are experiencing a lack of orders are also thinking about cutting jobs.”

Sentiment in the German export industry has turned brighter. The ifo Export Expectations rose from -1.5 in April to +0.3 points in May. “Positive and negative responses are in nearly perfect balance,” says Klaus Wohlrabe, Head of Surveys at ifo. “The export economy is not yet developing any great momentum overall.”

Le moral des exportateurs allemands s’est amélioré. Les prévisions communiquées à l’Institut ifo en matière d’exportations ont progressé, passant de – 1,5 point en avril à + 0,3 point en mai. « Les réponses positives et négatives s’équilibrent presque parfaitement », indique Klaus Wohlrabe, directeur des enquêtes de l’Institut ifo. « Dans l’ensemble, la dynamique des exportations reste cependant poussive. »

Sentiment among companies in Germany remains unchanged. The ifo Business Climate Index in May stayed at 89.3 points. Companies were less satisfied with their current business situation, but expectations brightened. The manufacturing, trade, and construction sectors are recovering, although the service sector took a slight hit. Germany’s economy is working its way out of the crisis step by step.

The competitiveness of German manufacturing within the EU and on global markets has been deteriorating for two years. This is based on analyses of the monthly ifo survey. Companies have reported falling behind in terms of competitiveness within the EU since the third quarter of 2022. The situation is similar on the global markets (outside the EU), where this trend had begun in the first quarter of 2022. “It’s becoming more difficult for German manufacturers to compete,” says Klaus Wohlrabe, Head of Surveys at ifo.

Residential construction in Germany is experiencing an order shortage. More than half the companies (55.2%) in this industry reported a lack of orders in April. In March, the figure was 56.2%. “Housebuilders are looking for signs of hope,” says Klaus Wohlrabe, Head of Surveys at ifo, “but there’s no end to the crisis in sight.”

The order shortage in Germany has worsened and is an obstacle to the economy. In April, 39.5% of manufacturing companies reported a lack of orders, up from 36.9% in January. In the service sector, the proportion rose from 32.1% to 32.4%. “The lack of orders is hampering economic development in Germany,” says Klaus Wohlrabe, Head of Surveys at ifo. “Almost all industries are affected.”

Companies in Germany are proving more cautious in their personnel planning. The ifo Employment Barometer slipped to 96.0 points in April, down from 96.3 points in March. “A lack of orders is causing some companies to put the brakes on hiring,” says Klaus Wohlrabe, Head of Surveys at ifo. “But service providers in some industries, such as data processing and tourism, are taking people on.”

Sentiment in the German export industry has clouded over a little. The ifo Export Expectations fell to -2.0 points in April, down from -1.2 points in March. “The mood is somewhat subdued,” says Klaus Wohlrabe, Head of Surveys at ifo. “The export economy lacks momentum at present. While the global economy offers many good prospects for growth, these aren’t yet being reflected in additional orders.”

Munich, April 24, 2024 – Sentiment has improved at companies in Germany. The ifo Business Climate Index rose to 89.4 points in April, up from 87.9 points1 in March. This is its third consecutive rise. Companies were more satisfied with their current business. Their expectations also brightened. The economy is stabilizing, especially thanks to service providers.

Le moral des dirigeants d’entreprise allemands s’est amélioré. En avril, l’indice ifo du climat des affaires est passé à 89,4 points, contre 87,9 points[1] au mois de mars. Il s’agit de la troisième amélioration consécutive. Les entreprises se déclarent plus satisfaites de la marche de leurs activités et se montrent plus optimistes pour l’avenir. La conjoncture se stabilise, notamment grâce au secteur des services.

German manufacturers hardly have to struggle with material shortages anymore. In March, 10.2% of the companies surveyed reported shortages, down from 14.6% in February. “The supply of raw materials and intermediate products has recently seen significant improvement,” says Klaus Wohlrabe, Head of Surveys at ifo. “The situation is now almost back to how it was before the coronavirus crisis.”

Cancellations in German residential construction have increased. Just under one in five companies (19.6%) reported canceled orders. In February, the figure was 17.7%. “The situation in residential construction remains tense,” says Klaus Wohlrabe, Head of Surveys at ifo. “There aren’t enough new orders to offset the cancellations.”

Companies in Germany are again looking to hire more staff. The ifo Employment Barometer rose to 96.3 points in March, up from 94.9 points in February. “Companies are currently more willing to hire because they are better able to assess the economic conditions. Skilled workers continue to be in demand,” says Klaus Wohlrabe, Head of Surveys at ifo.

Sentiment in the German export industry is markedly brighter. The ifo Export Expectations rose to -1.4 points in March, up from -7.0 points in February. “World trade ought to pick up in the months ahead,” says Klaus Wohlrabe, Head of Surveys at ifo, “and German exporters hope to benefit from this.”

Le moral des entreprises s'est nettement amélioré, comme le montre la progression de l'indice ifo du climat des affaires, de 85,7 points en février à 87,8 points[1] en mars. Les prévisions des entreprises s'avèrent beaucoup moins pessimistes. L'évaluation de la situation actuelle affiche elle aussi une amélioration. Une lueur d'espoir se profile à l’horizon pour l’économie allemande.

Sentiment in German companies has improved noticeably. The ifo Business Climate Index rose to 87.8 points in March, up from 85.7 points in February. In particular, companies’ expectations turned much less pessimistic. Assessments of the current business situation also improved. The German economy glimpses light on the horizon.

The shortage of skilled workers among companies in Germany has eased somewhat. According to the survey, 36.3% of firms are currently suffering from a shortage of qualified workers, down from 38.7% in October 2023. A year ago, it was 43.6%. “The weakening economy is reducing demand for skilled workers in the short term,” says ifo expert Klaus Wohlrabe, “but the fundamental problem is here to stay.”

The ifo Business Climate in residential construction has reached a new low. It fell to -61.9 points in February, down from -60.7 points in January. More than half of the construction companies surveyed are dissatisfied with the current situation. Expectations are also stuck at rock bottom. “At present there isn’t a single ray of hope on the horizon for residential construction,” says Klaus Wohlrabe, Head of Surveys at ifo. “Orders continue to be canceled. At the same time, building permits for apartments are in free fall.”

Material shortages in German manufacturing have become slightly worse. In February, 14.6% of the companies surveyed reported shortages, up from 12.5% in January. These are findings from the ifo Institute’s latest survey. “In addition to the ongoing conflict in the Red Sea, the rail strike in Germany has also led to a shortage of raw materials and intermediate products at some companies,” says Klaus Wohlrabe, Head of Surveys at ifo. “Nevertheless, the supply bottlenecks are not a fundamental problem for industrial production. At present, we’re mainly seeing delays within supply chains, not a total breakdown.”

Companies in Germany are looking to hire less staff. In February, the ifo Employment Barometer fell to 94.9 points, down from 95.5 points in January. “With the economy so sluggish, companies are putting off hiring new people,” says Klaus Wohlrabe, Head of Surveys at ifo. “Even layoffs can no longer be ruled out.”

Sentiment in the German export industry has brightened somewhat. The ifo Export Expectations rose to -7.0 points in February, up from -8.5 points in January. “The German export economy is hardly benefiting at all from current global economic developments,” says Klaus Wohlrabe, Head of Surveys at ifo. “There’s still a lot of room for improvement.”

Sentiment among German companies has brightened somewhat. The ifo Business Climate Index rose to 85.5 points in February, up from 85.2 points in January. This is due to slightly less pessimistic expectations. Assessments of the current situation remained unchanged – positive and negative responses here were nearly in balance. The German economy is stabilizing at a low level.

Le moral des dirigeants allemands s’est légèrement amélioré, l’indice ifo du climat des affaires étant passé à 85,5 points, contre 85,2 points en janvier. Cette embellie est due à des attentes un peu moins pessimistes alors que l’évaluation de la situation actuelle reste inchangée. Dans ce domaine, le nombre de réponses positives et négatives est à peu près le même. La conjoncture se stabilise à un faible niveau.

The business climate in German residential construction has fallen from -56.9 points to -59.0 points – the lowest value ever measured. The same is true for business expectations, which have sunk even further, dropping from -64.7 points to -68.9 points. “The outlook for the coming months is bleak,” says Klaus Wohlrabe, Head of Surveys at ifo. “Residential construction is still facing the double whammy of a lack of new orders and ongoing project cancellations.”

The lack of orders in manufacturing is increasingly becoming a burden on the German economy. In January, 36.9% of manufacturing companies reported a lack of orders, up from 36.0% in October. A year ago, the proportion was just 20.9%. In the service sector, the proportion rose from 29.3% to 32.1%. “The lack of orders has worsened noticeably over the past year. Hardly an industry has been spared,” says Klaus Wohlrabe, Head of Surveys at ifo. “What’s more, order backlogs are shrinking.”

Material shortages in German manufacturing continue to reduce. In January, 12.5% of the companies surveyed reported shortages, down from 18.2% in October. “At the moment, the attacks on commercial shipping in the Red Sea aren’t affecting the supply situation for raw materials and intermediate products,” says Klaus Wohlrabe, Head of Surveys at ifo.

Companies in Germany have become less willing to hire new staff. The ifo Employment Barometer fell to 95.5 points in January, down from 96.5 points in December. “The difficult economic situation is now also being reflected in personnel planning,” says Klaus Wohlrabe, Head of Surveys at ifo. “Companies are rather reluctant to hire new staff. An initial round of layoffs is becoming more likely.”

Sentiment in the German export industry has clouded over. The ifo Export Expectations fell to -8.4 points in January, down from -7.1 points in December. “The German export economy is off to a worse start in the new year,” says Klaus Wohlrabe, Head of Surveys at ifo. “Exporters need fresh momentum.”

Le moral des dirigeants allemands s’est à nouveau dégradé en début d’année. L'indice ifo du climat des affaires est tombé à 85,2 points, contre 86,3 points[1] au mois de décembre 2023. Les entreprises considèrent que leur situation s’est détériorée par rapport au mois précédent. Les attentes pour les mois à venir s'avèrent encore une fois plus pessimistes. L’économie allemande est enlisée dans la récession.

 

Sentiment among German companies has deteriorated further at the beginning of the year. The ifo Business Climate Index fell to 85.2 points in January, down from 86.3 points in December. Companies assessed their current situation as worse. Their expectations for the months ahead were also once again more pessimistic. The German economy is stuck in recession.

It has become slightly easier for German companies to obtain new loans. In December, 25.6% of companies in ongoing credit negotiations reported restraint on the part of banks; in September, that figure was 29.2%. “However, the banks remain cautious when it comes to lending,” says Klaus Wohlrabe, Head of Surveys at ifo.

The ifo Business Climate Index for residential construction has sunk to an all-time low. Sentiment in December fell to -56.8 points, down from -54.4 points in the previous month. This is its lowest level since the survey began in 1991. Dissatisfaction with the current situation is escalating. Companies also fear further business losses in the first half of 2024. “Although interest rates for home loans have recently been falling again, there is as yet no sign that the situation is easing,” says Klaus Wohlrabe, Head of Surveys at ifo. “These exceptionally weak expectations show that companies currently have no hope. The prospects for 2024 are bleak,” Wohlrabe says.

More companies in Germany want to hire employees. The ifo Employment Barometer rose to 96.5 points in December, up from 95.9 points in November. “At the moment, service providers in particular are looking for new staff,” says Klaus Wohlrabe, Head of Surveys at ifo. “In manufacturing, however, a lack of orders is leading companies to be rather cautious.”

Sentiment in the German export industry has deteriorated. The ifo Export Expectations fell to -6.7 points in December, down from -4.1 points in November. “Seasonal cheer is lacking in the export business,” says Klaus Wohlrabe, Head of Surveys at ifo. “Companies see few encouraging prospects for the start of the year.”

Sentiment in German business has clouded over. The ifo Business Climate Index fell to 86.4 points in December, down from 87.2 points (seasonally adjusted) in November. Companies were less satisfied with their current business. They were also more skeptical about the first half of 2024. As the year draws to a close, the German economy remains weak.

Le moral des dirigeants d’entreprise allemands s’est assombri. L’indice ifo du climat des affaires est passé de 87,2 points en novembre à 86,4 points[1] au mois de décembre. Les entreprises se déclarent moins satisfaites de la marche de leurs activités et envisagent le premier semestre 2014 avec un pessimisme accru. La conjoncture reste morose pendant la période des fêtes.

 

The clouds continue to gather over German residential construction. More and more companies are lamenting a lack of orders. In November, 49.1% of businesses had this complaint, up from 48.7% in the previous month. This is now the eighth increase in a row. Order cancellations were reported by 21.5% of companies, almost as many as in the previous month (22.2%). “Residential construction companies are hemorrhaging customers. High construction costs and the current interest rate level are causing many builders to despair. Many projects simply no longer pay off under these conditions and have to be postponed or canceled,” says Klaus Wohlrabe, Head of Surveys at ifo.

The willingness among companies in Germany to hire new staff has decreased slightly. The ifo Employment Barometer fell to 95.9 points in November, down from 96.2 points in October. “With a solid foundation for recovery still not in sight, companies are putting off hiring new staff,” says Klaus Wohlrabe, Head of Surveys at ifo. “Many companies continue to complain about a lack of new orders.”

Sentiment in the German export industry has improved. The ifo Export Expectations rose to minus 3.8 points in November, up from minus 6.3 points in October. “However, the export economy still isn’t managing to develop any momentum,” says Klaus Wohlrabe, Head of Surveys at ifo. “German companies have yet to benefit much from the economic upswing in many countries.”

Sentiment among German companies has improved slightly. The ifo Business Climate Index rose to 87.3 points in November, up from 86.9 points in October. This is its third consecutive increase. Companies assessed their current business situation as somewhat better. Expectations for the coming months were also less pessimistic. The German economy is stabilizing, albeit at a low level.

At present, 6.8% of German companies feel their economic survival is threatened, finds an ifo Institute survey. In the previous survey conducted in January 2023, it was 4.8%. “The current phase of economic weakness is leading to a growing number of corporate insolvencies,” says Klaus Wohlrabe, Head of Surveys at ifo. “But there’s not yet any indication of this turning into a larger wave.”

Germany’s event industry is urgently looking for more skilled workers, finds the latest ifo Institute survey. In October, 40% of event organizers reported having difficulties finding suitable staff, down from 45% in July. In summer 2022, the figure was 64%. “Following the slew of cancelations during the coronavirus pandemic, many companies couldn’t afford to keep people on,” says Klaus Wohlrabe, Head of Surveys at ifo. As a result, some festival organizers found it hard this summer to find enough security staff.

German manufacturing is seeing a considerable reduction in material shortages. In October, 18.2% of the companies surveyed reported shortages, down from 24.0% in September. This is a finding from the ifo Institute’s latest survey. “Things are almost back to pre-crisis levels,” says Klaus Wohlrabe, Head of Surveys at ifo. “Companies should plan now for future shortages, diversify their supply chains, and increase inventory levels.”

Germany’s wave of cancellations in residential construction continues. In October, 22.2% of companies reported canceled projects, up from 21.4% in the previous month. “It’s getting worse all the time, with more and more projects failing due to higher interest rates and elevated construction prices,” says Klaus Wohlrabe, Head of Surveys at ifo. “In residential construction, new business remains very low and companies’ order backlogs are diminishing.”

Companies in Germany are once again becoming more willing to hire new staff. The ifo Employment Barometer rose to 96.2 points in October, up from 95.8 points in September. “Nevertheless, companies continue to be cautious about making new hires,” says Klaus Wohlrabe, Head of Surveys at ifo. “The lack of new orders is still having a negative effect.”

Sentiment in the German export industry has brightened a little. The ifo Export Expectations rose to -6.9 points in October, up from -10.8 points in September. “However, Germany’s export economy is still being rather cautious looking ahead,” says Klaus Wohlrabe, Head of Surveys at ifo. “Many companies are experiencing a drop in competitiveness in international markets.”

Le moral des entrepreneurs allemands s'est amélioré. C'est ce qu'indique l'indice ifo du climat des affaires qui a progressé de 85,8 points en septembre à 86,9 points (Corrigé des variations saisonnières) au mois d’octobre. Les dirigeants se disent un peu plus satisfaits de la marche de leurs activités et un peu moins pessimistes pour les mois à venir. Une lueur d'espoir se profile à l’horizon pour l’économie allemande.

Sentiment in the German economy has improved. The ifo Business Climate Index rose to 86.9 points in October, up from 85.8 points  (Seasonally adjusted) in September. Companies are somewhat more satisfied with their current business. In addition, managers were less pessimistic in their view of the coming months. Germany’s economy can see a silver lining ahead.

It is becoming more difficult for companies in Germany to obtain new loans. In September, 29.2% of companies in ongoing credit negotiations reported restraint on the part of banks. In June, that figure was only 21.3%. “Banks are gradually increasing interest rates on loans and are more reluctant to grant them,” says Klaus Wohlrabe, Head of Surveys at ifo.

In German residential construction, more and more companies are reporting canceled projects. In September, 21.4% of businesses were affected, up from 20.7% in the previous month. This is one of the findings described in an article in the latest issue of ifo Schnelldienst. “Many projects are no longer economically viable due to high interest rates and increased construction costs. The apartments that aren’t being started today will be missing from the rental market in two years’ time. At -54.8 points, the ifo Business Climate for residential construction is now at its lowest level since the survey began in 1991,” says Klaus Wohlrabe, Head of Surveys at ifo. 

Supply problems in German manufacturing continue to ease. In September, 24.0% of the companies surveyed reported material shortages, down from 24.4% in August. “Things are settling down,” says Klaus Wohlrabe, Head of Surveys at ifo. The situation remains most problematic in the automotive industry, where just under 53% of the companies reported bottlenecks in the supply of raw materials and intermediate products.

The willingness among companies in Germany to hire new staff has taken a knock. The ifo Employment Barometer fell to 95.8 points in September, down from 97.0 points in August. This is its lowest level since February 2021. “The robust expansion of employment seen over the past few months has come to a standstill,” says Klaus Wohlrabe, Head of Surveys at ifo. “Due to a lack of orders, companies are being rather cautious about filling vacant positions.”

Sentiment in the German export industry is markedly worse. The ifo Export Expectations fell to -11.3 points in September, down from -6.5 points in August. “Germany’s export economy is going through a weak phase,” says Klaus Wohlrabe, Head of Surveys at ifo. “Exports to all key regions are currently in decline.”

Sentiment in the German economy remains bleak. The ifo Business Climate Index fell to 85.7 points in September, down from 85.8 points (seasonally adjusted) in August. Once again, companies were less satisfied with their current business situation. However, their pessimism regarding the coming months dissipated slightly. The German economy is treading water.

The crisis in the German residential construction sector continues to intensify. In August, 20.7 percent of companies reported canceled projects, up from 18.9 percent in the previous month. This is a finding of surveys by the ifo Institute. “Residential construction cancellations are piling up to a new high. We haven’t seen anything comparable to this since the survey began in 1991. The uncertainty in the market is huge,” says Klaus Wohlrabe, Head of Surveys at ifo.

German manufacturing is seeing fewer material shortages. In August, 24.4 percent of the companies surveyed reported shortages, down from 29.5 percent in July. This is a finding from the ifo Institute’s latest survey.

The willingness among companies in Germany to hire new staff has slightly decreased. The ifo Employment Barometer fell to 97.0 points in August, down from 97.1 points in July. “At the moment, plans for layoffs and hires are just balancing each other out,” says Klaus Wohlrabe, Head of Surveys at ifo. “Because of the economic downturn, many companies are holding back on hiring.”

Sentiment in the German export industry has deteriorated slightly. The ifo Export Expectations fell to minus 6.3 points in August, down from minus 6.0 points in July. “German exporters continue to struggle with weak global demand,” says Klaus Wohlrabe, Head of Surveys at ifo. “More and more companies are also complaining about being less able to compete at the global level.”

Sentiment among German managers has darkened further. The ifo Business Climate Index slipped to 85.7 points in August, down from 87.4 points in July. This is its fourth consecutive fall. Assessments of the current situation fell to their lowest level since August 2020. Moreover, companies are increasingly pessimistic about the months ahead. The German economy is not out of the woods yet.

The slump in residential construction in Germany continues. In July, 40.3% of companies complained of a lack of orders, up from 34.5% in June. A year ago, the proportion was 10.8%. These findings are from the ifo Institute’s latest survey. “A storm is brewing. Following many years of expansion, now higher interest rates and the drastic rise in construction costs are choking off new business,” says Klaus Wohlrabe, Head of Surveys at ifo.

German manufacturing is facing fewer and fewer problems with material shortages. In July, 29.5% of the companies surveyed reported shortages, down from 31.9% in June. “The situation has been easing steadily for more than a year,” says Klaus Wohlrabe, Head of Surveys at ifo, “although bottlenecks still exist for some electronic components.”

The willingness among companies in Germany to hire new staff has declined sharply. The ifo Employment Barometer fell to 97.1 points in July, down from 98.3 points in June. “At present, positive and negative responses balance each other out exactly,” says Klaus Wohlrabe, Head of Surveys at ifo. “Virtually all industries are becoming more cautious about taking on new hires.”

Sentiment in the German export industry has deteriorated slightly. The ifo Export Expectations slipped to -6.0 points in July, down from -5.9 points in June. “Demand from abroad is developing rather weakly,” says Klaus Wohlrabe, Head of Surveys at ifo. “This is also the result of restrictive monetary policy in the US and Europe, the effects of which are gradually being felt.”

Sentiment among German companies has worsened further. The ifo Business Climate Index fell to 87.3 points in July, down from 88.6 points  in June. This is its third consecutive fall. In particular, companies were notably less satisfied with their current business. Expectations were also lower. The situation in the German economy is turning bleaker.

German manufacturing is seeing fewer material shortages. In June, 31.9% of the companies surveyed reported shortages, down from 35.3% in May. However, this is still much higher than the long-term average of 15.2%. “Unfortunately, the easing does little to counteract the darkening mood in manufacturing,” says Klaus Wohlrabe, Head of Surveys at ifo. “Companies can process their existing orders faster, but they are currently receiving too few new ones.”

The willingness among companies in Germany to hire new staff has improved slightly. The ifo Employment Barometer rose to 98.4 points in June, up from 98.2 points in May. “But in manufacturing in particular, the sector’s budding pessimism is reflected in its cautious personnel planning,” says Klaus Wohlrabe, Head of Surveys at ifo. “Only service providers continue to consider hiring new people.”

Sentiment in the German export industry has deteriorated noticeably. The ifo Export Expectations fell to minus 5.6 points in June, down from plus 1.0 points in May. This is the lowest level since November 2022. “In addition to weak demand on the German domestic market, we’re now also seeing fewer orders from abroad,” says Klaus Wohlrabe, Head of Surveys at ifo. “This is bad news for Germany’s export economy.”

German manufacturing is seeing fewer material shortages. In May, 35.3% of the companies surveyed reported shortages, down from 39.2% in April. This is a finding from the ifo Institute’s latest survey. “The easing provides a little relief to Germany’s manufacturers as they deal with the difficulties of the current economic situation,” says Klaus Wohlrabe, Head of Surveys at ifo. “They can process existing orders more quickly, thus sustaining production. At present, the companies surveyed have an order backlog equivalent to 4.3 months of production – much more than the long-term average of 2.9 months. The decline in orders is therefore not yet having too great an impact.” 

The willingness among companies in Germany to hire new staff has declined. The ifo Employment Barometer fell to 98.3 points in May, down from 100.2 points in April. “Fewer new orders and rising uncertainty are causing restraint among companies,” says Klaus Wohlrabe, Head of Surveys at ifo. “Caution is also on the rise in the service sector, which until recently had been more positively inclined.”

Sentiment in the German export industry is markedly worse. The ifo Export Expectations fell to plus 1.8 points in May, down from plus 6.5 points in April. This is the lowest level since November 2022. “Global interest rate hikes are slowly having an effect on demand,” says Klaus Wohlrabe, Head of Surveys at ifo. “The German export economy lacks momentum.”

Le moral des exportateurs allemands s'est sensiblement détérioré. En mai, les prévisions communiquées à l'Institut ifo ont reculé, passant de + 6,5 points en avril à + 1,8 points. C'est le niveau le plus bas depuis novembre 2022. « Les hausses des taux d’intérêt commencent à peser sur la demande », explique Klaus Wohlrabe, directeur des enquêtes conjoncturelles de l’Institut ifo. « Les entreprises exportatrices allemandes ont perdu de leur dynamisme. » 

Sentiment in the German economy has suffered a setback. The ifo Business Climate Index fell to 91.7 points in May, after 93.4 points in April. This marks the first decline after six increases in a row. Driving this development are the significantly more pessimistic expectations. Managers are somewhat less satisfied with their current situation. German companies are skeptical about the upcoming summer.

German manufacturers are having an easier time sourcing raw materials and intermediate products. In April, 39.2% of the companies surveyed reported problems, down from 41.6% in March. “That’s good news for the sector, not least because it marks a rise in new orders,” says Klaus Wohlrabe, Head of Surveys at ifo. “But the companies would surely have also been delighted if the situation had eased even more.” 

Companies in Germany are more willing to hire new staff. The ifo Employment Barometer rose to 100.2 points in April, up from 99.9 points in March. “Employment is continuing to grow, although that growth is slowing, partly because of the shrinking population,” says Klaus Wohlrabe, Head of Surveys at ifo. “The drivers of employment growth in Germany are the service providers.”

Sentiment among German exporters has improved noticeably. The ifo Export Expectations for manufacturing companies rose to plus 6.9 points in April, up from plus 4.1 points in March. This is its highest level since February 2022. “Robust economic development in the US and the encouraging trend in China are increasing demand for German exports,” says Klaus Wohlrabe, Head of Surveys at ifo. “After a weak start to the year, exports have been able to grow again in the second quarter.”

Sentiment in German business has improved slightly. The ifo Business Climate Index rose to 93.6 points in April, up from 93.2 points in March. This was due to companies’ improved expectations. However, companies assessed their current situation as a little worse. German business’s worries are abating, but the economy is still lacking dynamism.

It has become easier for German companies to obtain new loans. In March, 22.7 percent of companies in ongoing credit negotiations reported restraint on the part of banks. In December, that figure was 30.0 percent. This is a finding of surveys by the ifo Institute. “The turbulence at some international banks is having no impact on lending in Germany,” says Klaus Wohlrabe, Head of Surveys at ifo. 

Material shortages in German manufacturing are slowly dissipating. In March, 41.6 percent of the companies surveyed reported problems, down from 45.4 percent in February. This is a finding from the ifo Institute’s latest survey. “This easing will have a positive impact on industrial production in the months ahead,” says Klaus Wohlrabe, Head of Surveys at ifo. “But we’re still a long way from an ideal supply situation.” 

German companies are once again willing to hire more staff. The ifo Employment Barometer rose to 99.9 points in March, up from 99.4 points in February. “The labor market is proving very robust,” says Klaus Wohlrabe, Head of Surveys at ifo. “Service providers in particular are looking for new employees.”

Sentiment among German exporters has brightened somewhat. The ifo Export Expectations rose to 4.0 points in March, up from 3.5 points in February. “Export demand still lacks some momentum,” says Klaus Wohlrabe, Head of Surveys at ifo. “Global economic development is rather subdued.”

Sentiment in German business has improved. The ifo Business Climate Index rose to 93.3 points in March, up from 91.1 points in February. This is its fifth consecutive rise. This upward development was driven primarily by business expectations; companies also assessed their current business as somewhat better. Despite turbulence at some international banks, the German economy is stabilizing.

There has been a noticeable improvement in the business climate for Germany’s self-employed, finds the latest index for this segment (“Jimdo-ifo Business Climate Index for the Self-Employed”). The indicator rose to minus 1.1 points* in February, up from minus 7.3 points in January. “More and more self-employed people are feeling hopeful about the months ahead,” says Klaus Wohlrabe, Head of Surveys at ifo. “Also, uncertainty is in decline.”

The shortage of materials in German manufacturing has continued to ease. In February, 45.4 percent of the companies surveyed reported problems. This is the lowest level since April 2021.  In January, the figure was 48.4 percent. This is a finding of the ifo Institute’s latest survey.

The willingness among companies in Germany to hire new staff has decreased somewhat. In February, the ifo Employment Barometer fell to 99.4 points, down from 100.1 points in January. In view of the shortage of skilled workers, however, it is to be expected that companies in many industries will continue to look for employees.

Sentiment among German exporters has worsened somewhat. In February, the ifo Export Expectations slipped to 3.8 points, down from 4.1 points in January. Weak global demand is currently dampening hopes for German exports.

Sentiment has improved among German business leaders. The ifo Business Climate Index rose to 91.1 points in February, up from 90.1 points  in January. Expectations in particular were brighter. However, assessments of the current situation were slightly less good. The German economy is gradually working its way out of a period of weakness.

The business climate for Germany’s self-employed continued to recover at the beginning of the year. In January, the index for this segment (“Jimdo-ifo Business Climate Index for the Self-Employed”) rose to minus 7.3 points (not seasonally adjusted), up from minus 11.4 points (not seasonally adjusted) in December. “While pessimism is dwindling, it’s still too early to talk about a noticeable improvement for the self-employed,” says Klaus Wohlrabe, Head of Surveys at ifo.

Fewer German companies feel their economic survival is threatened. The proportion fell to 4.8 percent in January from 6.3 percent in December, finds an ifo Institute survey.