ZCZC
BCN-26
GERMANY-ECONOMY-INDICATOR-BUSINESS
German business confidence falls back in April
FRANKFURT AM MAIN, April 24, 2019 (BSS/AFP) – Confidence among German
business leaders fell back in April, a closely-watched survey showed
Wednesday, wilting signs of green shoots visible in a tentative increase last
month.
The Munich-based Ifo institute said its confidence index fell 0.5 points
to 99.2, undoing half the first increase in six months booked in March.
“Companies are less happy with their present business situation, and the
slight optimism for the months ahead from March has dissipated,” Ifo chief
Clemens Fuest commented.
The figures reflected a continued split in the German economy, with
judgements of both the present situation and expectations for the coming
months grimmer among manufacturing firms.
Germany’s manufacturers are more reliant on exports, leaving them directly
exposed to upsets in global trade and slowdowns in emerging markets like
China.
Meanwhile services firms reported a slightly gloomier view of the present
situation than in March, mingled with increased optimism for the future.
Strong domestic fundamentals, including unemployment at its lowest since
reunification in 1990, have kept the service sector humming even as
manufacturers have suffered.
Overall, “the downward trend in business sentiment persists. External
factors — namely international protectionism and Brexit — should continue
to weigh on it,” said economist Uwe Berkert of LBBW bank.
However, “if the risk factors fall away, positive surprises would be
possible again,” he added.
BSS/AFP/HR/1450