The German economic sky seems brightening up as the Pulse indicators are moving towards the northwest quadrant of the chart. However, for the moment, the improvement is largely located outside the country’s large manufacturing sector. The IFO climate index strengthened after six consecutive months of decline, even though the business climate in the manufacturing sector continued to deteriorate. Also industrial production surprised on the upside, thanks to an increase in construction activity (+6.8%). Manufacturing activity was almost unchanged, which was actually quite a surprise, given the fall in new factory orders in recent months.
Index Germany
