Bitkom-ifo Digital Index catches up with downward trend of previous month
Business in the digital industry continues to be significantly better than in the economy as a whole. The current business situation of IT and telecommunications companies is currently clearly positive and, at 30.0 points, is 0.9 points higher in July than in June. However, business expectations for the rest of the year are not yet back above the zero line. They currently stand at -4.6 points, compared with -4.0 points in June. This is shown by the Bitkom-ifo Digital Index. The index tracks the current business situation and business expectations for the coming three months and uses this to calculate the business climate. The business climate now stands at 12 points, up from 11.9 points in June. “The companies in the Bitkom sector are holding their own in a difficult environment and are proving to be largely crisis-proof,” says Bitkom President Dr. Ralf Wintergerst. He added that this could also be seen in the development of employment. The Bitkom industry is creating around 12,000 new jobs in Germany this year.
By way of comparison, the ifo Institute reports that the business climate for the economy as a whole remains negative at -9.1 points. At 8.1 points, the business situation is assessed as significantly worse than in the previous month, when it stood at 13.5 points. Business expectations in the economy as a whole also remain in negative territory, standing at -25.0 points in July after -24.3 points in June.
Note on methodology: The Digital Index is based on the monthly ifo Business Survey and is formed from the geometric mean of the Business Situation Index and the Business Expectations Index. Data from the digital industry, which is made up of companies in the manufacturing, trade and services sectors, is taken into account. These include manufacturers of IT and communications technology, consumer electronics, providers of software and IT services, telecommunications services, and ICT wholesale and retail.