Germany’s Ifo Business Climate index edged higher from 85.3 to 86.7 in March, While the rise was slightly below market expectations of 87.0, the improvement was broad-based across sectors. Current Assessment Index ticked up from 85.0 to 85.7, above expectations of 85.5. Expectations Index rose from 85.6 to 87.7, though still shy of the 87.9 forecast.
Across sectors, sentiment improved uniformly. The manufacturing index rose notably from -21.9 to -16.6. Services (up from -4.3 to -1.1), trade (up from -26.3 to -23.7), and construction (up from -27.4 to -24.6) all saw smaller improvements, indicating a broad but tentative shift in mood.
Ifo President Clemens Fuest commented that “German businesses are hoping for a recovery,” a sentiment echoed by survey head Klaus Wohlrabe, who projected 0.2% growth in GDP for Q1, after -0.2% contraction in Q4.
