ifo Business Climate Index Rises Marginally (February 2020)
Sentiment among German managers has improved somewhat. The ifo Business Climate Index rose from 96.0 points (Seasonally adjusted) in January to 96.1 points in February. Although companies assessed their current situation as a little worse, they are less pessimistic about the next six months. The German economy seems unaffected by developments surrounding the coronavirus. The survey results and other indicators suggest economic growth in the first quarter will amount to 0.2 percent.
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In manufacturing, the Business Climate Index rose for the third consecutive month. This was due to considerably less pessimistic expectations. However, companies’ assessment of their current situation was worse. Demand and order volumes recovered a little.
In the service sector, the indicator fell again. Service providers were somewhat less satisfied with their current situation. They are also more skeptical concerning the coming months.
In trade, the business climate worsened. Recent improvements in the current situation and in expectations suffered a setback. Only in retail did the expectations index rise.
In construction, the index declined once more. This was a result of companies’ more pessimistic expectations. In contrast, their assessment of the current situation was slightly better.
Clemens Fuest
President of the ifo Institute
ifo Business Climate Germany
(Index, 2015 = 100, seasonally adjusted)
02/19 | 03/19 | 04/19 | 05/19 | 06/19 | 07/19 | 08/19 | 09/19 | 10/19 | 11/19 | 12/19 | 01/20 | 02/20 | |
Climate | |||||||||||||
Situation | |||||||||||||
Expectations |
Source: ifo Business Survey.
© ifo Institute
ifo Business Climate Germany and by Sector
(Balances, seasonally adjusted)
02/19 | 03/19 | 04/19 | 05/19 | 06/19 | 07/19 | 08/19 | 09/19 | 10/19 | 11/19 | 12/19 | 01/20 | 02/20 | |
Germany | |||||||||||||
Manufacturing | |||||||||||||
Service Sector | |||||||||||||
Trade | |||||||||||||
Construction |
Source: ifo Business Survey.
© ifo Institute