[Skip to Content]

Register to receive the OMFIF Daily Update and trial the OMFIF membership dashboard for a month.

* Required Fields

Member Area Login

Forgotten Password?

Forgotten password

Analysis

German Ifo business climate index

by Gabriel Stein

Tue 26 Nov 2013

German Ifo business climate index Enlarge Chart loading Image

What the chart shows: The chart shows the Ifo Business Climate Index (index 2005=100) as well as the difference between the two main sub-indices, Current situation and Business expectations

Why the chart is important: Business and consumer surveys normally lead the economic cycle. For the moment, the euro area recovery is primarily only visible in survey data. Only in Germany does it seem as if the recovery is actually gaining traction in terms of ‘hard’ data. This highlights Germany’s role as the engine of euro area recovery and makes German business sentiment even more important. The Ifo survey for November shows two things. First, business confidence continues to improve. Second, the difference between the view of the current business situation and future expectations continues to narrow. This has historically pointed to confidence continuing to improve in coming months, implying that the German recovery will continue.

Chart and comments provided by Stein Brothers (UK) www.steinbrothers.co.uk