German business climate index continues to recover in June: ifo Institute

Source: Xinhua| 2020-06-24 19:10:32|Editor: huaxia

BERLIN, June 24 (Xinhua) -- The German business climate index continued to recover in June and rose from 79.7 points in May to 86.2 points in June, the ifo Institute announced on Wednesday.

It was the biggest monthly increase ever recorded by ifo. "Sentiment among German companies has brightened further," said Clemens Fuest, president of the ifo Institute. "German business sees light at the end of the tunnel."

After plunging to a historic low in April, the ifo business climate index based on the economic sentiment of around 9,000 German company executives had already started recovering in May, according to the ifo Institute.

The index for Germany's manufacturing sector rose significantly due to "notably improved expectations among industrial companies," according to the ifo Institute. However, a great majority of German manufacturing companies still assessed their current situation as poor.

Business climate in the service sector also continued to improve in June. The ifo Institute noted that there was a "particularly pronounced reduction in service providers' pessimism regarding the coming six months."

Although many trade companies in Germany still expected "disappointing business development," the assessment of the current situation as well as trade companies' expectations recovered notably compared to the previous month, according to the ifo Institute. Enditem