German business climate stabilises in April

German business climate stabilises in April

Business confidence in Germany has stabilized at a low level after a drop in the previous month due to high energy prices and uncertainty from the Ukraine war.

According to the Ifo InstituteIfo Institute data released Monday, the business-climate index rose to 91.8 points in April from 90.8 points in March. Economists polled by The Wall Street Journal predicted that the index would drop to 89.1.

After the initial shocks of the Russian attack, the German economy has shown signs of resilience, according to Ifo President Clemens Fuest. The index increased to 86.7 in April from 84.9 in the previous month, with the increase being due to less pessimism in companies expectations, according to Ifo's data. The companies' assessment of the situation is marginally better, rising to 97.2 in April from 97.1 in March. The Ifo index is based on a poll of 9,000 companies in manufacturing, services, trade and construction.