by Thorsten Koch

The Ifo business climate index, a manager survey, has brightened slightly. It rose by 5 points to 79.5 points in May. The Corona easing has given hope a glimmer, commented Ifo President Clemens Fuest. The current situation is a little worse than usual, but the managers are generally less skeptical.

Expectations have increased significantly, especially in the manufacturing sector, but the industry is still worse off than without Corona. The situation in the service sector was also seen better – with restrictions. Despite pessimism, the reactions in the retail and construction industries were already much better.

Orders in the construction sector in March were 10.5 percent less positive than in February. According to the Federal Statistical Office, this is not unusual. Many construction projects would be realized later, the Federal Office indicated. A minus of 0.2 percent is currently expected across all sectors of the economy.

The statisticians said that the gross domestic product decreased by 2.2 compared to the previous three months. A 3.2 percent decline in private consumption had contributed to this, according to the Office. Equipment investments declined selectively by 6.9 percent. Overall, the Federal Government is forecasting a 6.3 percent drop in GDP this year.