he German economy is showing few signs of recovery after a crucial indicator showed business bosses’ gloom deepened in the opening weeks of 2020. Hopes of a rebound in the eurozone’s largest economy were dashed by the influential IFO Institute’s monthly survey, which slipped in January to record its first fall since August.
the center of the country recent slowdown , may be stabilizing, with the biggest improvement in its index score in almost two years.
orries over the US-China trade war and the risk of this extending into a US-EU trade war add to the uncertainty and could undermine growth and investment in manufacturing, he said, while other sectors are also struggling.
t Comes after weak surveys across the eurozone last week suggested the currency area’s manufacturing woes are not over, while the services sector labels with minimal growth.
The purchasing managers’ survey from IHS Markit indicated a “stable” but underwhelming outlook for growth, with German and French businesses performing better than those in the smaller economies.
Katharina Koenz at Oxford Economics said: “The main disappointment was in services, which are prone to be volatile, so we maintain our view that recession risks are fast abating for Europe’s largest economy and expect Germany’s growth will pick up a little, to 0.2pc in 2020 ‘s first quarter. Downside risks from industry, global trade and the threat of US car tariffs remain, however. ”
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