GERMANY: Firms recruit fewer staff in February

German firms proved slightly less willing to recruit new staff in February, with the Ifo Employment Barometer dropping to 106.8 index points from 108.1 in January. There were setbacks in the service sector and a growing number of bright spots in manufacturing, according to the Munich-based research institute.
The employment barometer in manufacturing rose for the third month in succession. The main drivers were capital goods manufacturing and the food industry. While retailers hired more staff, wholesalers adopted a more cautious approach.
Construction firms remain reticent about recruitment due to the winter weather. After a strong performance in January, service providers were also less willing to hire additional staff this month.