The mood in the economy brightened

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Surprisingly good news from Munich: The Ifo business climate indicator rose after six consecutive decreases. Responsible for the positive business climate, especially in the trade and construction industry.

The mood in German boardrooms has improved: The Barometer of the business climate rose in March, surprising to 0.9 to 99,6 points, as the Munich-based Ifo Institute’s monthly survey, told under about 9,000 managers. Economists had expected only with 98.5 points.

Industry remains the problem child

“The German economy resist the downturn,” said Ifo President Clemens Fuest. The executives assessed their current business situation somewhat better, and looked “considerably more optimistic” in the next six months. For the upward trend in services, Commerce and construction were: Here, the mood improved. Continues to be a concern, however, the export-dependent industry. The Manager is not evaluated, only the location negative, but also the prospects. You are as bad as since November 2012.

Especially in the construction industry the mood has improved

“In the face of falling demand, the companies are planning production increases,” said Fuest. The weak world economy, uncertainties such as the Brexit and the threat of US punitive duties on cars from the EU, weighed on currently in the industry.

Brexit is the stumbling block for the industry

“The Ifo is a big surprise,” said the German chief economist at the Bank UniCredit, Andreas Rees, to the unexpected increase in the business climate. “But it’s still too early to talk of a cyclical turning point.”

Clemens Fuest, the Director of the Institute for economic research ifo

The probability of a recession was now gone from almost 40 to under 30 percent. “One swallow does not make a economy summer, not a spring,” said the chief economist at the Landesbank Baden-Württemberg, Uwe Burkert, of caution. The chief economist of the Kreditanstalt für Wiederaufbau, Jörg Zeuner, warned against excessive optimism: “The climate is brightening is a sign of hope, but no more. Because of the Konjunkturzug continues in the slow lane – and the biggest brake on the industry,” he said. Here, the slower pace of the world economy was particularly noticeable. “At the same time, the Brexit is heading to its dramatic climax, and threatens at Unger’s departure, great Britain will apply in particular to the strong export branches of industry in this country is affected,” said Zeuner.

The economy had recently halved its forecast for growth of German gross domestic product this year to 0.8 percent. In 2018, it had passed to 1.4 percent.

nob/as (rtr, dpa)