German business confidence improves for 4th straight month

Feb 22, 2023, 5:00 AM | Updated: 5:03 am

BERLIN (AP) — German business confidence has strengthened for a fourth consecutive month as managers look past current problems to take a more optimistic view of the months ahead, a closely watched survey showed Wednesday.

The Ifo institute said its monthly confidence index rose to 91.1 points in February from 90.1 last month. That was due entirely to a clear improvement in companies’ outlook for the next six months, because their assessment of the situation now worsened slightly.

The survey has shown confidence rising since November, but it is well below its level of 98.6 last February, before Russia launched its full-scale invasion of Ukraine.

Ifo said “the German economy is gradually working its way out of a period of weakness.” Europe’s biggest economy shrank by 0.2% in last year’s fourth quarter compared with the previous three-month period, largely because of a decline in consumer spending.

The Ifo survey is based on responses from about 9,000 companies in a broad range of sectors.

The fact that the improved outlook is still based solely on forward-looking expectations reinforces the view that “Germany’s economy will only start to recover during the second quarter,” Timo Klein, principal economist at S&P Global Market Intelligence in Frankfurt, said in a research note.

“However, the broad-based nature of improving expectations across all relevant sectors reassures that economic activity will indeed pick up soon, enabled by reduced worries about energy security and prices,” he added.

Inflation has dogged Germany in recent months as it has other countries. The Federal Statistical Office said Wednesday that the annual inflation rate rebounded to 8.7% in January after dropping to 8.1% in December, stemming from the state taking on the cost of natural gas customers’ monthly bills in December as part of a massive government energy relief package.

That was meant to ease the pain of natural gas prices that surged following the invasion of Ukraine and the end of Russia’s gas supplies to Germany.

A feared shortage of gas used to heat homes, generate electricity and power industry hasn’t materialized, however. Germany’s gas storage facilities are well-stocked, and the country has opened its first liquefied natural gas terminals.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

This photo provided by Robert Wilkes, owner of a house boat management company, shows smoke rising ...

Associated Press

Houseboats catch fire while docked at Wahweap Marina on Lake Powell

More than half a dozen house boats momentarily caught fire at a popular boating destination on the Utah-Arizona line on Friday.

1 day ago

File - Women work in a restaurant kitchen in Chicago, Thursday, March 23, 2023. On Friday, the U.S....

Associated Press

US hiring, unemployment jump in May and what that says about the economy

The nation’s employers stepped up their hiring in May, adding a robust 339,000 jobs, well above expectations.

1 day ago

(Pixabay Photo)...

Associated Press

Oath Keeper from Arizona sentenced for role in Jan. 6 riot at US Capitol

Edward Vallejo, a U.S. Army veteran from Phoenix, oversaw a “Quick Reaction Force” at a Virginia hotel that was prepared to deploy an arsenal of weapons into Washington if needed, authorities say.

2 days ago

FILE - U.S. Border Patrol Chief Raul Ortiz listens during a news conference, Jan. 5, 2023, in Washi...

Associated Press

US Border Patrol chief is retiring after seeing through end of Title 42 immigration restrictions

The head of the U.S. Border Patrol announced Tuesday that he was retiring, after seeing through a major policy shift that seeks to clamp down on illegal crossings at the U.S.-Mexico border following the end of Title 42 pandemic restrictions.

3 days ago

FILE - President Joe Biden talks with House Speaker Kevin McCarthy of Calif., on the House steps as...

Associated Press

House OKs debt ceiling bill to avoid default, sends Biden-McCarthy deal to Senate

The House approved a debt ceiling and budget cuts package late Wednesday, as President Joe Biden and Speaker Kevin McCarthy assembled a bipartisan coalition of centrist Democrats and Republicans against fierce conservative blowback and progressive dissent.

3 days ago

Sean Bickings (Family Photo via city of Tempe)...

Associated Press

Family of man who drowned last year in Tempe Town Lake files wrongful death lawsuit

The family of a man who drowned in Tempe Town Lake a year ago filed a wrongful death lawsuit against the city Wednesday, noting that its police department doesn't have a policy requiring officers to go into the water to save someone.

3 days ago

Sponsored Articles

...

OCD & Anxiety Treatment Center

5 mental health myths you didn’t know were made up

Helping individuals understand mental health diagnoses like obsessive compulsive spectrum disorder or generalized anxiety disorder isn’t always an easy undertaking. After all, our society tends to spread misconceptions about mental health like wildfire. This is why being mindful about how we talk about mental health is so important. We can either perpetuate misinformation about already […]

...

re:vitalize

Why drug-free weight loss still matters

Wanting to lose weight is a common goal for many people as they progress throughout life, but choosing between a holistic approach or to take medicine can be a tough decision.

...

Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.

German business confidence improves for 4th straight month