ifo Business Surveys to Determine the ifo Business Climate Index
Project period: ongoing (since 1949 KT West, since 1991 KT Ost)
Research Areas:
Content
The ifo Business Climate is a highly regarded leading indicator for economic development in Germany. It is based on around 9,000 monthly reports from companies in the manufacturing, service, construction, wholesale and retail sectors.
Methods
Every month, companies are asked to assess their current business situation and their expectations for the next six months. They can label their situation as "good", "satisfactory" or "poor" and their business expectations for the next six months as "more favorable", "unchanged" or "less favorable". The responses are weighted and aggregated according to the importance of the sectors. The balance value of the current business situation is the difference between the percentages of the answers "good" and "bad", the balance value of the expectations is the difference between the percentages of the answers "more favorable" and "less favorable". The business climate is an average of the balances of the business situation and expectations.
Publications
The ifo Economic Perspectives publish the results of the ifo Business Surveys in detailed charts, tables and business surveys. These cover manufacturing, construction, wholesale, retail and services as a whole and the sectors assigned to each.
