According to the latest figures from the Ifo Institute, the mood among companies in the industry improved significantly in May.
 

According to surveys conducted by the Ifo Institute, the mood among companies in Germany improved overall in May. The Ifo Business Climate Index rose by 0.6 points to 87.5 points compared with the previous month. Although companies assessed their current business situation slightly worse than in April (-0.3 to 86.1 points), they were more optimistic about their business expectations (+1.5 to 88.9 points). “The German economy is slowly regaining momentum,” said Ifo President Prof. Dr. Clemens Fuest, summarizing the development.
 
In the manufacturing sector, the index rose significantly by 4.2 points to -13.8 points, which would be attributable to a stabilization in incoming orders and an upward correction in company expectations. The improvement in sentiment was particularly pronounced among manufacturers of rubber and plastic products. In this subsegment of the manufacturing sector, the business climate index rose by 14.2 points to -3.6 points, its best figure in two years. The decisive factor here was the massive improvement in expectations, which climbed by 23.2 points to 0.7 points. However, the current situation was also assessed less pessimistically than before (+5.2 to -7.7 points). Not all sub-sectors of the manufacturing industry are in a more positive mood, however. In the chemical industry, for example, the climate deteriorated slightly in May.
 
Sources:

• Press release from the Ifo Institute (22.5.2025)
• Kunststoff Information (28.5.2025)
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