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Digital index slides deeper into the red

Sentiment in the digital industry deteriorated further in April. Under the impact of the Corona crisis, the business situation index fell by 20.1 points to 0.9 points.
E-3 Magazine
30 July 2020
[shutterstock.com: 1740006764, Seasunandsky]
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This text has been automatically translated from German to English.

This means that, on average, IT and telecommunications companies now only rate their current situation as satisfactory; a month ago, the business situation was still predominantly assessed as good.

The outlook also deteriorated further. The index of business expectations for the coming six months fell by 10.6 points to -36.3.

As a result, the digital index, which is calculated from the assessment of the business situation and business expectations, slipped sharply into negative territory. After -3.8 points in the previous month, the index fell to -18.7 points. This is the lowest value since the first survey in 2006.

"Amid the corona crisis, sentiment among digital companies remains more positive than in the overall economy, but the outlook for the coming months has dimmed sharply"

says Bitkom President Achim Berg.

"Under massive constraints on the economy and society, it is digital technologies that keep public and private life running. After the decisive and swift initial Corona aid, policymakers must now follow up and develop a plan to boost the economy in the medium term and sustainably strengthen and accelerate digitization. The world is turning digital, and Germany must follow suit."

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