The COVID shock is followed by a slight recovery. Since March, the business situation indicators of the digital association Bitkom have plummeted to historic lows. In May, they began to pick up slightly.
The one from Bitkom The index for the business situation in the digital sector, calculated by the German Institute for Computing and Information Technology (BITKOM), rose by 1.4 points to 2.5 points in May. This means that IT and telecommunications companies rate their current situation on average as satisfactory and somewhat better than in the previous month. Companies' expectations are also less negative than in the two previous months: The sub-index for business prospects for the coming six months increased significantly, climbing by 15.1 points to -21.2 points. The Bitkom-Ifo Digital Index, which is calculated based on the assessment of the business situation and business expectations, rose by 8.9 points to -9.7 points after hitting an all-time low in April.
"The Corona crisis is not over yet, and it would be too early to speak of optimism. But companies in the digital sector are now more positive again, and hope is growing that the worst is over,"
says Bitkom President Achim Berg.
"During the lockdown, digital technologies kept public life running. Corona was also a signal for the dawn of the digital age, and the companies in our industry will be able to benefit in the long term from the fact that the pressure on businesses and the public sector to digitize has continued to increase."
The business situation in the overall economy is also improving
Expectations are also improving in the labor market. The index rose by 3.0 points to -2.9 in May, indicating a near-stable situation. Price expectations, however, declined slightly: The index fell by 1.9 points to -1.4, slipping into negative territory for the first time since December 2016.
Sentiment in the overall economy has also improved. The Ifo business climate index rose by 11.5 points, but remains well below negative territory at -26.2 points. The business situation deteriorated by 1.2 points to -20.1 points, while expectations rose by 22.5 points to -32.0 points.
