The survey results for May are a bitter disappointment. While sentiment in recent months has cooled in industry above all, at present commerce and the service sector are both rating their business performance nowhere near as well as in the prior month.
The figure for their assessment of the current business situation has as good as crashed in May. Moreover, this has happened in sectors that had hitherto remained relatively stable. After all, in the first quarter private consumer spending was the key factor driving the economy. Only construction continues to run well, with the boom continuing there. Business expectations among corporations in all sectors have at least held steady as regards the coming months.
All in all, this does not augur well for economic growth in the second quarter. In the current global economic setting, impetus from foreign trade is certainly not to be expected. If sentiment were now also to deteriorate further in the domestic economy, there is the threat that the drivers of the German economy wane.