Germany's business conditions improve in August

By Gokhan Ergocun

ISTANBUL (AA) - While sentiment among companies in Germany has brightened slightly, the Ifo Institute for Economic Research said the Business Climate Index rose to 89 points in August, up from 88.6 points in July.

"This increase was due to improved expectations among companies. However, the current situation was assessed as slightly worse. The German economy’s recovery remains weak," the institute noted on Monday.

The manufacturing index fell slightly, indicating that companies were less satisfied with their current business.

"Expectations were revised slightly downward, and there are still no indications of growth in order intake. Sentiment among capital goods manufacturers improved noticeably," the institute added.

In the service sector, the business climate deteriorated slightly, and while the current situation was rated significantly better, expectations became more cautious.

The trade-side index fell due to poorer business performance, but expectations were slightly less pessimistic.

The construction index fell slightly after months of stability, as "companies expressed less satisfaction with the current situation. However, their outlook for the coming months improved.