German economy keeps the rising trend

The German economy keeps a trend of improvement. Despite Europe’s economic and energy crisis, it shows signs of recovery for the fourth consecutive month. The research proves that the business index rose to 91.2 points in February compared to 90.1 points in January.

The Ifo Institute President Clemens Fuest says the German economy is gradually working out of a period of weakness.

The business sentiment in Germany is forecast to keep improving during the following months.  The predictions rely on the facts that, towards the summer months, the pressure of inflation will lower, and the prices for energy sources should lower. This will perform a positive effect on the purchasing power of the consumers. 

Still, experts warn about possible minor setbacks, particularly in the construction and automotive sectors. Though the experts predict the weakening of private consumption in the upcoming period, the proportion of companies planning to raise their prices in the next three months decreased further in February, and supply bottlenecks are easing.