Latest news with #ifo
Fibre2Fashion
4 days ago
- Business
- Fibre2Fashion
German retail sentiment sees notable uptick in May: ifo
Germany's retail sector saw a notable improvement in sentiment in May, with the ifo Business Climate Index rising to -18.6 points from -25.8 in April. Retailers reported a more favourable assessment of both their current business situation and future expectations. Germany's retail sentiment improved in May as the ifo index rose to -18.6 from -25.8 in April, with better assessments of current conditions and future outlook. Clothing retailers remained more pessimistic. Price pressures eased, with fewer hikes in April and restrained plans ahead. ifo's Hí¶ppner noted improved mood despite concerns over US trade policy. However, clothing retailers continued to view their business climate more negatively than the retail sector overall. Price pressure in the industry has eased somewhat. In April, retailers raised prices less frequently than in the previous month, and they now appear more restrained in their plans for future price increases. 'Retailers are still dissatisfied with their economic situation, but their mood has improved considerably. For the time being, they assume that the economic risks posed by current US foreign trade policy will not weigh significantly on consumer sentiment,' ifo expert Patrick Höppner said in a release. Fibre2Fashion News Desk (HU)
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)
Yahoo
18-05-2025
- Business
- Yahoo
East German leader demands more federal aid as data shows some uptick
The state premier of Mecklenburg-Vorpommern has called on the new government of German Chancellor Friedrich Merz to take decisive action to kick start the sluggish economy. "No economic growth for the third year in a row – that's not acceptable," said Manuela Schwesig, of the centre-left Social Democrats, at the opening of the annual East German Economic Forum, this time in the town of Bad Saarow. But an economic report presented at the forum showed some positive signs for the east German economy. Eastern Germany has made notable gains in economic performance, research and quality of life, but still trails structurally behind the west, according to a study by the ifo Institute in Dresden for the Central German Foundation for Science and Education. The study compared the economic, social and scientific development of east and west Germany based on around 170 indicators. It also highlighted differences within eastern Germany itself, showing that the region is not a homogeneous economic area but is characterized by regional strengths. Schwesig identified lower energy prices, increased investment and reduced bureaucracy as key priorities, emphasizing that getting Europe's biggest economy back on track should the top political goal. In addition to permanently offering affordable energy for both businesses and consumers, she urged the federal government to introduce "fair grid fees that reward regions investing in renewable energy rather than penalising them." Regional economic differences The ifo report showed some regional strengths in east Germany, though Schwesig's Mecklenburg-Vorpommern, a comparatively poor region, was not highlighted. For example, Saxony's export rate of 32% exceeds the west German average, while Thuringia's industrial share matches that of Bavaria. Berlin and Saxony also stand out in research spending, ranking among the top regions in Europe. Overall, eastern Germany's economic performance, measured by gross domestic product (GDP) per hour worked, stands at 86% of the west German average. Between 2019 and 2024, annual economic growth in the east outpaced the west by 0.3%, largely attributed to Berlin's economic boom. Lower immigration but higher real wages The monitor also highlights challenges: the proportion of foreign residents in the east is significantly lower at 7.2% compared to 15.6% in the west. However, real wages in the east exceed 90% of the west's level, thanks to lower living costs. The report was presented at the forum by the "Saarower Kreis," a group of east German economic stakeholders aiming to provide fact-based impulses for structural policy. "Eastern Germany is not a homogeneous weak zone but a laboratory for the future," spokesman Frank Nehring stated. He added that the region needs more confidence in its strengths and the courage to think innovatively in economic policy. At the three-day conference, business leaders are to discuss the challenges facing eastern Germany as a business location with members of Merz's new conservative-led coalition government. Companies have long complained about high energy costs, a shortage of skilled workers, heavy tax and social security burdens and excessive bureaucracy.
Fibre2Fashion
04-05-2025
- Business
- Fibre2Fashion
German economy to slowdown amid rising US tariffs: ifo
The Ifo Institute fears that the German economy will contract again as early as the summer. Tightened US tariff policies prompted early goods purchases, which temporarily boosted German exports and industrial production, leading to a 0.2 per cent GDP increase in Q1 2025, according to the Ifo Institute. 'However, the noticeable increase in tariffs on imports from the EU that came into force in April and the threat of further tariff increases weighed on the further course of the economy in Germany,' said Timo Wollmershäuser, head of forecasts at ifo . The results of the ifo Business Surveys from April also point to a decline in economic output. The ifo Business Climate has improved slightly, recording its fourth consecutive rise. However, this was mainly due to an improved assessment of the current situation, while the outlook for the coming months deteriorated, particularly among industrial companies. The ifo Institute warns of a potential German economic contraction by summer 2025, following a modest 0.2 per cent GDP rise in Q1 driven by early US purchases ahead of tariff hikes. New US tariffs on EU imports and rising uncertainty are dampening future prospects, especially in industry. While current conditions improved slightly, business expectations declined. According to Wollmershäuser, it is not yet clear whether these assessments will be confirmed in the coming months. 'At the same time, industrial companies have reported a sharp increase in uncertainty, which means they are currently finding it more difficult to assess their business than usual.' In particular, the US administration's shift in economic policy harbours risks. Opportunities could arise if the new German government takes swift decisions. Fibre2Fashion News Desk (RR)
Yahoo
24-04-2025
- Business
- Yahoo
Survey: German business sentiment improves despite US trade war
Sentiment among German businesses improved in April despite the new tariffs announced by US President Donald Trump, according to a survey by a leading German economic institute published Thursday. The ifo Institute's business climate index saw a slight uptick this month, rising by 0.2 points to 86.9 points, and defying economists' expectations who had expected business sentiment to worsen after Trump announced a slew of new tariffs on April 2. However, the report suggests that expectations regarding future business among the 9,000 companies surveyed have deteriorated slightly. "Uncertainty among the companies has increased," ifo institute president Clemens Fuest noted, adding that "the German economy is preparing for turbulence." But companies assessed the current business climate to be more favourable, with sentiment improving in particular in the service sector, according to the survey. "Companies were more satisfied with the current business situation," while "expectations remained slightly skeptical," the institute said. In the construction sector, sentiment rose to its highest level since May 2023, the survey found. Meanwhile, the index fell among manufacturing and trade companies, following improvement in the previous month, with the uncertainty surrounding Trump's trade policies weighing on industry. Landesbank Baden-Württemberg analyst Elmar Völker said the survey indicated "a small light at the end of the tunnel," but cautioned against premature optimism. Companies evidently believe that they can adapt to the new conditions in the global economy, said chief economist Ulrich Kater from Dekabank. "Hopes are pinned in particular on the European domestic market and other major economic regions outside the US."
