BERLIN, May 23 Reuters Germany39;s longawaited economic recovery is not materialising and the euro zone39;s largest economy will only stagnate this year, the German chambers of commerce and industry DIHK said on Thursday.

Nevertheless, the forecast was more optimistic than at the start of the year, when the DIHK expected a 0.5 contraction.

The DIHK expects private consumption to support the economy this year, growing by 1.0, as inflation eases to 2.3 from 5.9 in 2023.

The DIHK survey, conducted among 24,000 companies from all sectors and regions, shows that the hope of recent months that good foreign business or a recovery in domestic demand could act as a driver for domestic companies has not materialised.

The current situation of companies is poor, and even bad in industry, said DIHK Managing Director Martin Wansleben at the presentation of the survey. Expectations do not show a strong upward trend.

Of the companies surveyed, 28 reported a good current situation in the spring, while 23 reported a bad one.

It is particularly worrying that the situation in industry has deteriorated since the beginning of the year and thus remains negative, Wansleben said in Berlin.

The results are worse in the industrial sector, where pessimism predominates. The survey shows that 23 of the companies reported a good situation and 28 reported a bad one.

However, business expectations are brightening. Only 26 of companies now have negative expectations, down from 35 in the…