Results of the November 2013 Ifo Business Survey
Ifo Business Climate Improves
The Ifo Business Climate Index for industry and trade in Germany rose significantly. Assessments of the current business situation improved. Firms’ expectations regarding business developments rose to their highest level since spring 2011. The German economy looks ahead to the winter months with confidence.
The business climate indicator in manufacturing rose considerably. Assessments of the current business situation were more positive than last month. Manufacturers’ business expectations were clearly more optimistic and they expect stronger impulses from exports.
The business climate improved at both levels of trade. Retailers were far more optimistic about their future business developments, while assessments of the current business situation remained largely unchanged. In wholesaling firms were more satisfied with their current business situation. They also expressed far greater confidence in future business developments.
After seven consecutive decreases, the business climate index in construction rose considerably. Although assessments of the current business situation are somewhat less positive, contractors are far more optimistic about their future business outlook than last month.
President of the Ifo Institute
Results of the Ifo Business Survey in Germany in all details (in German)
Summary of the Results
Results of the Ifo Business Survey (Summary) of November 2013 | Dec 19, 2013 | Information service | Details
Ifo Business Climate Germany (Index)
Business Situation and Expectations by Sector (Balances)
Ifo Business-Cycle Clock
The Ifo Business Climate Index is based on ca. 7,000 monthly survey responses from firms in manufacturing, construction, wholesaling and retailing. The firms are asked to give their assessments of the current business situation and their expectations for the next six months. They can characterise their situation as “good”, “satisfactory” or “poor” and their business expectations for the next six months as “more favourable”, “unchanged” or “more unfavourable”. The balance value of the current business situation is the difference between the percentages of the responses “good” and “poor”, the balance value of the expectations is the difference between the percentages of the responses “more favourable” and “more unfavourable”. The business climate is a transformed mean of the balances of the business situation and the expectations. For the purpose of calculating the index values, the transformed balances are all normalized to the average of the year 2005.