German business morale remained unchanged in February as companies were less satisfied with current situation, while expectations improved moderately amid the federal elections, survey results from the ifo Institute showed on Monday.
The ifo business climate index registered 85.2 in February, the same as in January. The score was forecast to rise to 85.9.
The current situation index dropped unexpectedly to 85.0 from 86.0 in the previous month. Economists had forecast the reading to climb to 86.5.
Meanwhile, the expectations index rose marginally to 85.4 from 84.3 a month ago. The score was also above forecast of 85.2.
"The German economy is waiting to see how things develop," ifo President Clemens Fuest said.
In manufacturing, the business climate improved as companies were noticeably less pessimistic about the coming months. However, the current situation was assessed somewhat worse. At the same time, order books stabilized.
Confidence among service providers weakened in February. Companies were less satisfied with the current situation. Expectations also deteriorated slightly.
In trade, the business climate improved due to a more optimistic outlook. Wholesalers and retailers assessed their current economic situation as somewhat better. The business climate in construction improved due to slightly less skeptical expectations. However, current business was assessed somewhat worse, with the lack of orders being the core problem.
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