Results of the November 2014 Ifo Business Survey
Ifo Business Climate Index Rises
The Ifo Business Climate Index for industry and trade in Germany rose in November to 104.7 points from 103.2 points in October. The business climate previously deteriorated six times in a row. Assessments of the current business situation are slightly more favourable than last month. Expectations with regard to the months ahead are also brighter. The downturn in the German economy has ground to a halt for the moment at least.
In manufacturing the business climate indicator rose after six consecutive decreases. Manufacturers are more satisfied with their current business situation. They are also somewhat less pessimistic about their business outlook. Manufacturers continue to expect further stimuli from export business.
In wholesaling the business climate improved markedly. Wholesalers assess their current business situation as significantly better. Business expectations turned slightly positive. The business climate also brightened in retailing. Thanks to a marginal improvement in the current business situation, positive and negative assessments are now balanced. Retailers are far less pessimistic about future business developments.
In construction the overall favourable current business situation deteriorated only marginally. The marked improvement in business expectations is typical for this time of the year.
President of the Ifo Institute
Results of the Ifo Business Survey in Germany in all details (in German)
Ifo Business Survey in Brief
Ifo Business Survey in November 2014 in Brief: Downturn Grounds to a Halt Temporarily At Least | Dec 15, 2014 | 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.