Latest news with #ClemensFuest
Fibre2Fashion
24-05-2025
- Business
- Fibre2Fashion
Sentiment among German companies improves: ifo business climate index
Sentiment among German companies has improved, according to the ifo business climate index, which rose to 87.5 points in May this year—up from 86.9 points in April. This was due to less skeptical expectations. However, companies assessed their current business situation as somewhat less favourable. The recent sharp rise in uncertainty among companies has eased somewhat. The German economy is slowly regaining its footing, Clemens Fuest, president of Munich-based ifo Institute for Economic Research, said in a release. Sentiment among German firms has improved, according to the ifo business climate index, which rose to 87.5 points in Mayâ€'up from 86.9 in April. This was due to less skeptical expectations. However, firms assessed their current business situation as somewhat less favourable. The recent sharp rise in uncertainty among firms has eased somewhat. The index rose significantly in manufacturing and trade. The index rose significantly in manufacturing. Companies revised their expectations noticeably upward. They also assessed their current situation as somewhat better. Order intake stabilised. The sentiment in the chemical industry deteriorated slightly. The transport and logistics sector recovered from the slump in sentiment caused by the customs announcements. In trade, the index rose noticeably. Expectations in particular rose sharply in both wholesale and retail trade. Traders were also more satisfied with their current situation. Fibre2Fashion News Desk (DS)
Reuters
22-05-2025
- Business
- Reuters
German business sentiment brightens in May, Ifo survey finds
BERLIN, May 22 (Reuters) - German business morale improved slightly more than expected in May, a survey showed on Thursday, thanks to less gloomy expectations. The Ifo institute said its business climate index rose to 87.5 in May from 86.9 in April. Analysts polled by Reuters had forecast a rise in the reading to 87.4. "The German economy is slowly regaining its footing," Ifo president Clemens Fuest said. The improvement in business morale was mainly due to a rise in expectations to 88.9 in May from 87.4 in April. However, current conditions fell to 86.1 from 86.4 in the previous month.
Telegraph
09-05-2025
- Business
- Telegraph
Germany urged to cut public holidays to boost war effort
Germans should sacrifice an annual public holiday to fund the nation's rearmament, a top economic institute has proposed. Europe's largest economy faces a crippling shortage of workers, which is undermining its effort to rebuild its military and embark on a construction programme to revitalise national infrastructure. Fixing the problem, according to the Ifo Institute, a think tank, must involve working harder, including taking less time off. The number of public holidays varies by state, with Bavaria benefitting from 13 days. Clemens Fuest, the Ifo president, said Germany cannot rely on extra borrowing and spending by Chancellor Friedrich Merz's new government to transform the economy. He said: 'The fact that loans are being provided for infrastructure and armaments secures the financing. But where will the labour come from to implement all this? 'Unless more labour is available than before, these spending programmes will increase wages in the defence and construction industry, causing workers to migrate from other sectors. 'Other industrial sectors would have to shrink, and staff would become more scarce in important service sectors such as health and care. Prices would rise everywhere, and many citizens would have to tighten their belts.' He estimates that the extra day's work would add €8bn (£6.8bn) to the economy's annual output. Germany would not be the first country to contemplate such a move. Mr Fuest notes that Denmark abolished one of its bank holidays in 2023 to fund a bigger defence budget. Emmanuel Macron, the French president, has proposed a new school calendar without the traditional long eight-week summer break. In Germany, almost one third of industries say they are suffering from a shortage of skilled workers, underlining the need for more labour. Rearmament also threatens to make the shortages worse as more Germans will work for the armed forces instead of in civilian industries. The economy has barely grown since the pandemic, with output in the first quarter of this year almost identical to the level on the eve of Covid. Mr Merz's first move – acting under the old parliament, before new members took their seats – was to change the country's constitutional 'debt brake', allowing the new administration to borrow and spend more. Extra military spending is expected to boost the manufacturing industry, while economists hope that more infrastructure investment will improve long-term growth prospects. The measures have already had repercussions across Europe. The low-debt German government's borrowing costs are typically used as the benchmark for determining interest rates for other nations, and on to businesses and households, across the eurozone. As plans for extra borrowing from Berlin have pushed up its borrowing costs in debt markets, so has the impact been felt across the currency area.
Yahoo
09-05-2025
- Business
- Yahoo
Germany urged to cut public holidays to boost war effort
Germans should sacrifice an annual public holiday to fund the nation's rearmament, a top economic institute has proposed. Europe's largest economy faces a crippling shortage of workers, which is undermining its effort to rebuild its military and embark on a construction programme to revitalise national infrastructure. Fixing the problem, according to the Ifo Institute, a think tank, must involve working harder, including taking less time off. The number of public holidays varies by state, with Bavaria benefitting from 13 days. Clemens Fuest, the Ifo president, said Germany cannot rely on extra borrowing and spending by Chancellor Friedrich Merz's new government to transform the economy. He said: 'The fact that loans are being provided for infrastructure and armaments secures the financing. But where will the labour come from to implement all this? 'Unless more labour is available than before, these spending programmes will increase wages in the defence and construction industry, causing workers to migrate from other sectors. 'Other industrial sectors would have to shrink, and staff would become more scarce in important service sectors such as health and care. Prices would rise everywhere, and many citizens would have to tighten their belts.' He estimates that the extra day's work would add €8bn (£6.8bn) to the economy's annual output. Germany would not be the first country to contemplate such a move. Mr Fuest notes that Denmark abolished one of its bank holidays in 2023 to fund a bigger defence budget. Emmanuel Macron, the French president, has proposed a new school calendar without the traditional long eight-week summer break. In Germany, almost one third of industries say they are suffering from a shortage of skilled workers, underlining the need for more labour. Rearmament also threatens to make the shortages worse as more Germans will work for the armed forces instead of in civilian industries. The economy has barely grown since the pandemic, with output in the first quarter of this year almost identical to the level on the eve of Covid. Mr Merz's first move – acting under the old parliament, before new members took their seats – was to change the country's constitutional 'debt brake', allowing the new administration to borrow and spend more. Extra military spending is expected to boost the manufacturing industry, while economists hope that more infrastructure investment will improve long-term growth prospects. The measures have already had repercussions across Europe. The low-debt German government's borrowing costs are typically used as the benchmark for determining interest rates for other nations, and on to businesses and households, across the eurozone. As plans for extra borrowing from Berlin have pushed up its borrowing costs in debt markets, so has the impact been felt across the currency area. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
25-04-2025
- Business
- Yahoo
German Business Expectations Dip, Ifo Says
Ifo President Clemens Fuest discusses the institute's latest reading on German business expectations which fell in April as US President Donald Trump's tariffs overshadowed recent optimism about a huge jump in public spending. The Ifo's overall business climate gauge rose slightly. Fuest speaks on Bloomberg Television.
