BERLIN (Reuters) – The number of German companies fearing for their survival has fallen significantly, despite the economic risks posed by the war in Ukraine, a survey showed on Monday.

The Ifo institute said that 7.1% of the nearly 8,500 companies surveyed feel their existence is threatened, almost half the proportion found in the last survey in January, when the figure stood at 13.7%.

“However, sectors that have been hit particularly hard by the coronavirus pandemic still feel threatened. These include the hospitality and event industries, where almost 25% of companies are reporting concerns over their survival,” Klaus Wohlrabe, head of surveys at ifo, said in a statement.

In retail, 6.9% of companies considered themselves under threat, compared to 14.8% in January, Ifo found, although Wohlrabe pointed out that the latest numbers “don’t yet show any traces of the current inflation dynamic.”

“The high level of uncertainty generated by the war in Ukraine hasn’t triggered an increase in survival fears in the key sectors,” Wohlrabe says. “Manufacturing order books remain full.”

In manufacturing, 4.9% of companies fear for their survival, down slightly from 5.6% in January, according to the survey.

(Reporting by Rachel More, Editing by Miranda Murray)