Ifo Business Survey of the Service Sector – Background, Explanations and Performance

In terms of gross value added, the service sector is the largest economic sector in Germany. The Ifo Business Survey has systematically covered this sector on a monthly basis since 2005. This article offers background information on the survey of the service sector and explains its results. Moreover, it shows that the survey results are excellent for explaining official statistics, namely that they are very good indicators. As of 2015 there are plans to integrate the service sector in the existing Ifo aggregate for the “industrial sector”, which consists of manufacturing, wholesaling, retailing and construction.