German companies see some light at the end of the tunnel. The Ifo index, which measures the business climate of Europe's largest economy, improved to 86.7 points in March, the best result since September.
The increase is even more significant in the future outlook, which had not been at a comparable level (87.7 points) since June.
Naturally, the end of Germany's obsession with balanced budgets and the announced willingness to invest in upgrading infrastructure, arming itself, and reviving the economy has much to do with it.
A new approach to budget will benefit manufacturing and services
Unsurprisingly, given the country's many challenges, companies active in architecture and engineering are remarkably optimistic. The improvement concerns both the manufacturing and service sectors. The trade and construction sectors are also less pessimistic, but they are starting from a long way.
German companies are, therefore, regaining confidence and should move towards better days. However, the mood is still not celebratory, and both the manufacturing and construction sectors are still worried about ordering books that do not fall too much.