--German business sentiment rose for the fifth consecutive month in September
--Companies' assessment of their current situation improved
--Companies' expectations were slightly more optimistic
By Maria Martinez
German business sentiment rose in September, increasing for the fifth consecutive month, the Ifo Institute said Thursday.
"The German economy is stabilizing despite rising infection numbers," Ifo said.
The Ifo business-climate index came in at 93.4 points in September from a downwardly revised 92.5 points in August. Economists surveyed by The Wall Street Journal had forecast it at 93.5 points.
Companies' assessment of their current situation went up, rising to 89.2 points in September from 87.9 points in August. Expectations also leaped slightly higher, with the component rising to 97.7 points from a revised 97.2 points in August, Ifo said.
The Ifo index is based on a poll of about 9,000 companies in manufacturing, services, trade and construction.
In the manufacturing sector, the business-climate indicator once again jumped significantly, rising to minus 0.2 from minus 5.6 in August as companies' assessment of their current situation was more upbeat and the outlook for the coming months was again more optimistic.
By contrast, in the service sector, the index fell after rising four times in a row. Driven by less optimistic expectations, the index fell to 6.9 in September from 7.7 points the previous month.
The business climate brightened significantly in trade, Ifo said. The trade index rose to 0.3 points from minus 4.8 points in August.
In construction, the business-climate indicator continued to improve and reached its highest level since March. The index rose to 3.3 points in September from 0.0 the month prior.
Write to Maria Martinez at maria.martinez@wsj.com
