German business sentiment stagnates - Ifo

(Sharecast News) - German business sentiment was unchanged in February, according to a survey released on Monday by the Ifo Institute. The business climate index was steady compared to the previous month at 85.2.

The expectations index rose to 85.4 this month from 84.3. in January, while the current situation index printed at 85.0, down from 86.0.

The manufacturing index was -22.1 in February versus -24.8 a month earlier, while the service sector gauge fell to -4.3 from -2.2.

The index for trade improved to -26.2 from -29.5 and the gauge for the construction sector printed at -27.6 from -28.1.

Ifo Institute president Clemens Fuest said: "Sentiment among companies in Germany continues to be sceptical.

"While companies were slightly less satisfied with current business, expectations brightened somewhat. The German economy is waiting to see how things develop."

Carsten Brzeski, global head of macro at ING, said the Ifo index offers no boost for the incoming government.

"While Germany is still digesting and debating Sunday's election results, the latest Ifo index reading suggests that the economy remains stuck in stagnation," he said.