Recruit Sales in Germany Bulletin -Covid 19 - May 2020 Update

Recruiting Sales in Germany

COVID 19 Bulletin May 2020

What they are saying: The media have been reporting widely on the impact of COVID 19 on business within Germany. Here is a brief summary as of May 01st 2020:

IFO INDEX

The IFO index is one of the most important German economic barometers and is considered a reliable indicator for the development of the economy for the next six months.

The mood among German companies at present is low. The Ifo Business Climate Index fell to 74.3 points in April, from 85.9 points in March. This is the lowest value ever measured. There has never been a sharper decline. The corona crisis seems to have hit the German economy, like others, with full force at the moment.

The index for assessing the current situation of the companies surveyed dropped to 79.5 (revised down to 92.9 in March) points, the lowest level since July 2009. Economists had expected 80.8 points. The business expectations index dropped to an all-time low of 69.4 points. The economists surveyed had expected a drop to 77.0. For March 79.7 points had been reported.

In the manufacturing sector, the business climate index dropped to its lowest level since March 2009. The current business situation of industrial companies deteriorated. The expectations were characterised as pessimistic. The expectation indicator fell to a historical low. According to the Ifo survey, the demand for industrial products has plummeted.

The business climate indicator fell to a low in the service sector. The service providers have never assessed their situation as badly as in April. There was also seems to be a high degree of pessimism about expectations moving forward – especially in the short term.

The downturn in the business climate indicator continued in retail. The judgments on the current business situation deteriorated to a record low. The negative record of March in terms of expectations was beaten again.

The index has also never fallen so sharply in the construction industry. The same applies to the indicator of the current situation and that of expectations. Most of the construction companies were still satisfied with their current situation.

Compiled by SA in May 2020 from various news sources

*Please note the information contained herein is an aggregate of news stories, by commentators widely available - readers should seek independent verification, and this in no way represents the views or opinions of Standley Associates.

We will continue to check the news reports and will provide monthly summaries of the trends.