BERLIN, May 27 (Reuters): German business morale stagnated in May, a survey showed on Monday, falling short of a forecast improvement and suggesting the recovery of Germany's economy this year will be slow progress.
The Ifo institute said its business climate index remained constant in May at 89.3, compared with a reading of 90.4 forecast by analysts in a Reuters poll.
"The Ifo index, Germany's most prominent leading indicator, just illustrated that the cyclical bottoming out will not automatically be followed by a strong recovery," said Carsten Brzeski, global head of macro at ING.
Looking ahead, the economy should gain more momentum, as strong wage growth fuels a cautious recovery in private consumption and even the inventory cycle should gradually start to turn positive, Brzeski said.
"However, this cyclical improvement does not mean everything is suddenly hunky-dory again in Germany," the economist concluded.
Companies were less satisfied with the current business situation, the Ifo survey showed. Expectations, on the other hand, brightened.
German business sentiment stagnates in May
FE Team | Published: May 27, 2024 23:50:57
German business sentiment stagnates in May
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