BERLIN (dpa-AFX) - German business confidence stagnated in May as the deterioration in the current assessment was offset by the improvement in expectations, survey results from the ifo Institute showed on Monday.
The business climate index registered 89.3 in May, unchanged from April. The score was forecast to improve to 90.3 from April's initially estimated value of 89.4.
The indicator steadied in May after three straight months of increase.
Companies were less satisfied with their current situation, while their expectations brightened.
The current situation index unexpectedly dropped to 88.3 from 88.9 in the previous month. The reading was seen at 89.9.
Meanwhile, the ifo expectations indicator advanced to a 13-month high of 90.4 from 89.7 a month ago.
ifo President Clemens Fuest said, 'Germany's economy is working its way out of the crisis step by step.'
The ifo survey showed that the manufacturing, trade and construction sectors recovered in May, while the service sector weakened.
In manufacturing, the business confidence strengthened for the third month. Companies were more satisfied with their current situation and their outlook for the coming months was less pessimistic.
In the service sector, the business confidence deteriorated in May. Current business situation worsened, while their expectations improved a bit. Companies reported additional orders.
In trade, the business climate index advanced notably. Although business expectations rose considerably, they were still marked by skepticism. The current situation also rose in May.
In construction, the business climate index climbed again. Companies were more satisfied with their current situation and their expectations were somewhat less pessimistic.
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