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IFO Employment: Overall Softening, Services Stronger

GERMAN DATA
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The April IFO Employment Barometer fell slightly after two consecutive upticks, coming in at 96.0 (vs 96.3 prior). Overall, the report showed some dichotomy and suggests that employment perspectives in the services sector are improving, while in manufacturing, employment sentiment gets slightly worse.

  • Looking at the details of the report, the manufacturing and trade sectors printed declines but remained above levels seen at the beginning of this year, printing at -12.2 and -11.8, respectively, in April (-2.8p and -2.0p vs March).
  • The services and construction sectors were only partially able to make up for this, while services remained the only sector in expansionary terrirory (+0.5p to 5.7; construction +1.7p to -6.8).
  • IFO notes that data processing and tourism firms are the main drivers behind the firmer print in the services sector.
  • The data mirrors April's Flash PMI, which also noted a "dichotomy between rising workforce numbers in the service sector and further manufacturing job cuts".
  • The official German statistics show employment continuing to rise overall, however this is driven by public sector and part-time work, with full time private sector employment falling. Today's IFO Employment Barometer adds to this narrative of a weakening private sector labour market.

IFO, MNI

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The April IFO Employment Barometer fell slightly after two consecutive upticks, coming in at 96.0 (vs 96.3 prior). Overall, the report showed some dichotomy and suggests that employment perspectives in the services sector are improving, while in manufacturing, employment sentiment gets slightly worse.

  • Looking at the details of the report, the manufacturing and trade sectors printed declines but remained above levels seen at the beginning of this year, printing at -12.2 and -11.8, respectively, in April (-2.8p and -2.0p vs March).
  • The services and construction sectors were only partially able to make up for this, while services remained the only sector in expansionary terrirory (+0.5p to 5.7; construction +1.7p to -6.8).
  • IFO notes that data processing and tourism firms are the main drivers behind the firmer print in the services sector.
  • The data mirrors April's Flash PMI, which also noted a "dichotomy between rising workforce numbers in the service sector and further manufacturing job cuts".
  • The official German statistics show employment continuing to rise overall, however this is driven by public sector and part-time work, with full time private sector employment falling. Today's IFO Employment Barometer adds to this narrative of a weakening private sector labour market.

IFO, MNI