Although the business climate in Germany continues to improve, companies still see significant challenges, particularly on the supply chain side, which are already weighing for construction and are likely to slow down the industry.
As the vaccination campaign accelerates, with consumers recovering from their habits and, ultimately, economic activity resuming, Deutsche companies note a marked improvement in the financial situation.
The logistics and information technology sectors strengthen, but ultimately, the overall business climate is improving.
Companies are optimistic about the current state of the economy. In June, the business climate reached 101.8 points, the highest value since November 2018.
Still, above all the activity-related losses that stand out: at 104 points, they are at their highest since December 2010, that is to say, more than a decade.
There is, however, a downside to this general optimism: in industry, firms are concerned about bottlenecks in supply and production chains that end up weighing on their business.
This is also the case in the construction sector, where the lack of materials felt in recent months.
As a driving force for Europe, the forecasts for Germany are crucial for investment in stocks in the European market and, in particular, for the euro area.
In our investment strategy we maintain our exposure to Eurozone equities. Here you can find the latest update of the portfolio allocation.