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Dow Jones Stock Market Today – German Business Sentiment Rises in March — Update

   By Maria Martinez 
 

–German business sentiment improved in March, rising to 96.6 points

–Ifo says German economy to enter spring with confidence despite rising infections

–Both business expectations and assessment of the current situation posted gains

 

German business sentiment improved noticeably in March, beating expectations and reaching its highest level since June 2019, the Ifo Institute said Friday.

The Ifo business-climate index came in at 96.6 points in March compared with an upwardly revised 92.7 points in February. Economists surveyed by The Wall Street Journal had forecast the index at 93.0 points.

Companies have become less pessimistic about the coming six months. The expectations component rose to 100.4 points from a revised 95.0 points in February, Ifo said.

“Despite the rising rate of infections, the German economy is entering the spring with confidence,” Ifo said.

Companies also assessed their current business situation with more optimism than the previous month, with this component rising to 93.0 points in March from 90.6 points in February.

The Ifo index is based on a poll of about 9,000 companies in manufacturing, services, trade and construction.

In manufacturing, the business climate continued to recover, rising to 24.1 points in March from 16.4 points in February. Companies were considerably more satisfied with their current business and their expectations were the most optimistic they have been since November 2010, Ifo says.

In the service sector, the business climate index rose markedly, as satisfaction with the current situation grew and cautious optimism returned for the first time since the fall. The index for services rose to 6.5 in March from minus 2.2 in February. Nevertheless, Ifo says hotels, restaurants, and tourism still find themselves in a very bad situation.

In trade, the business-climate index rose to minus 1.4 in March from minus 14.6 the previous month. The indicators for the current situation and for business expectations both rose sharply, Ifo says. In retail, however, the situation is still bad, the economic institute says.

The business-climate index in construction is back in positive territory, rising to 2.3 in March from minus 2.8 in February. The indicator of the current business situation rose to its highest value in a year, Ifo says.

 

Write to Maria Martinez at maria.martinez@Fintech Zoom.com

 

(END) Dow Jones Newswires

March 26, 2021 05:42 ET (09:42 GMT)

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Dow Jones Stock Market Today – German Business Sentiment Rises in March — Update