The Bitkom-Ifo Digital Index measures both the current business situation and future business expectations in the digital sector and uses this to calculate a combined business climate. The Digital Index rose by 8.9 points to 26.0 points in April, approaching the level seen before the outbreak of the war in Ukraine. Business expectations have also improved significantly, turning positive from -4.1 to 5.5 points. This means that the majority of companies no longer expect a decline in orders for the next six months, but rather a positive one. The current business situation continues to look rosy. The corresponding index rose from 39.8 to 48.5 points. This value was last higher than in April 2022, three years ago, long before the outbreak of the pandemic.
Bitkom President Achim Berg comments on the development:
"The Russian war of aggression and the consequences of the sanctions policy are putting a strain on overall economic development and exacerbating the already significant difficulties with disrupted supply chains, slowing growth, and rapidly rising inflation. But compared to the overall economy, the digital sector is weathering these burdens much better. Business is going well, and after the shock of February, companies are now again confident about the near future."
Business climate in the overall economy back in positive territory
The digital sector plans to hire more employees, with the employment expectations index rising by 5.1 points to 35.3. Furthermore, companies in the IT and communications sector expect prices to continue rising. The price index rose by 5.1 points to 42.7.
The overall business climate also brightened, rising by 2.3 points to 0.7 points. The business situation recorded a slight increase of 0.3 points, reaching 21.5 points. Business expectations increased by 3.9 points, but remained well below the negative level at -18.2 points.
