DMV-ifo Marketing Barometer June 2020

Upward trend in the German marketing sector continues.

The German marketing sector is once again looking to the future with much more optimism than at the low point in April 2020. after the assessments of the current business situation and business expectations for the coming months had already improved significantly in the previous month of May, this trend continued with similar strength in June. Nevertheless, these indicators are still well below the pre-crisis level.

The Marketing Business Climate Index rose in June, compared to May, by 9.4 points to 78.3 points, thus again exceeding the March value. While a low point was reached in April, after two clearly positive monthly reports, one can speak with cautious optimism of a temporary trend reversal. The ifo business climate index for the German economy as a whole also clearly improved to 86.2 (+6.5) points. After a slight gain in the previous month, the assessment of the current business situation in the marketing sector also recovered noticeably by 9.1 points to an index value of 74.6. The business expectations of German marketers rose most noticeably by 9.7 points to a value of 82.0. It is thus in the region of the values from February and March of this year. Furthermore, the positive development of the German marketing sector can also be seen in the assessment of the order backlog, the number of employees and the sales expectations. Although the majority of respondents still expect a decline in orders on hand at -40.9, this metric improves by 7.8 points compared to May. The value of the expected number of employees rises more strongly at 10.4 points to a value of -11.5, an improvement of 21.7 points since April. It should be emphasized that the majority of marketers expect a decline in sales and fewer employees, although to a lesser extent compared to the previous months. This is also the case for the sales expectations, which however, with a value of -8.1 and a very clear improvement of 24.3 points compared to May, are the fastest approaching zero again. Only price expectations bucked the general trend and fell by 10.3 points into negative territory to a value of -3.6 points, after having become positive again for the first time in the previous month.

The complete analysis including charts can be found here. (only available in German)

Link to past evaluations.