The Ifo institute said its business climax index rose to 93 in May following a reading of 91.9 in April, revised up slightly from 91.8.Ifo said in its statement there were"currently no observable signs of a recession".He added that service providers were benefiting from the easing of Covid-19 restrictions - especially in the tourism and hospitality sector. But the situation in the industrial sector was more difficult.
Inflation and supply bottlenecks threatened a post-pandemic consumption boom, said Alexander Krueger at private bank Hauck Aufhaeuser Lampe, adding:"The question mark over a stronger reviving economy in the second half of 2022 is getting bigger." Volkswagen, Europe's top carmaker, earlier this month stuck to its outlook for 2022, shrugging off supply chain disruptions caused by the war in Ukraine and the pandemic by drawing on its global production network.