Good mood in the German digital industry2. June 2021
Good mood in the German digital industry
Sentiment among IT and telecommunications companies in Germany has reached its highest level since November 2018. In April, the Bitkom-Ifo Digital Index, which is calculated from the assessment of the business situation and business expectations , rose by 5.6 points to 38.1. Business expectations for the coming six months also improved by 4.6 points to 25.5.
“In the digital sector, business is better than it has been for a long time. The accelerated vaccination campaign and the prospect of a further recovery of the German economy also make companies very confident for the rest of the year,” says Bitkom President Achim Berg. “The Bitkom industry is showing itself to be resistant to short-term economic setbacks, as many other industries had to experience several times during the corona crisis. The pandemic is pushing digitization in all areas, and as soon as other sectors of the economy recover, we expect additional momentum in investment.”
More jobs and falling prices
Given the positive business climate, companies are increasingly looking for workers. Employment trends promise similar momentum as sales: The corresponding expectations increased by 6.0 points to 23.3. This means that the majority of companies plan to hire additional workers in the coming three months.
“The only thing that will go down is prices, and that’s good for customers,” Berg says. The price index slipped slightly by 1.3 points from the previous month to 13.2.
In the overall economy, sentiment remained virtually unchanged from the previous month. The Ifo business climate rose slightly by 0.3 to 11.5 points. The business situation improved by 2.3 points to 14.4. Expectations decreased by 1.6 points, but remain in positive territory at 8.7 points.