BERLIN (Reuters) -German business morale improved in February, adding to signs that Europe’s largest economy is recovering despite the energy crisis and high inflation, a survey said on Wednesday.
The Ifo institute said its business climate index stood at 91.1 following a revised reading of 90.1 in January.
A Reuters poll of analysts had pointed to a February reading of 91.2.
“The German economy is gradually working its way out of its weak phase,” said Ifo President Clemens Fuest.
The index measuring current conditions unexpectedly sank slightly, to 93.9 from 94.1 the previous month, falling short of analysts’ expectations of a rise to 95.0.
“The continued slight decline in the assessment of the current business situation makes us pensive” despite the rise in the business climate index, said Commerzbank chief economist Joerg Kraemer.
Slightly fewer companies in Germany – 45.4% – complained about supply chain bottlenecks in February compared to January, when the percentage stood at 48.4%, according to Ifo economist Klaus Wohlrabe.
The German economy will not get around a recession, but it will be a mild one, he added.
(Reporting by Rachel More and Miranda Murray, Editing by Friederike Heine)
