Results of the February 2015 Ifo Business Survey
Ifo Business Climate Index Edges Upwards
The Ifo Business Climate Index for industry and trade in Germany rose to 106.8 points in February from 106.7 points last month. Satisfaction with the current business situation decreased somewhat, but companies expressed greater confidence in future business developments. The German economy is proving robust in the face of geopolitical uncertainty.
In manufacturing the business climate indicator rose somewhat. Manufacturers’ assessments of the current business situation were slightly less favourable than last month. The six-month business outlook improved, however, reaching its highest level since August 2014. International business remains a key driver.
In wholesaling the business climate deteriorated marginally. Wholesalers were somewhat less satisfied with their current business situation, but expressed greater optimism about future business developments. In retailing the business climate index edged upwards. Very good assessments of the current business situation were scaled back somewhat, but the outlook continued to improve.
In construction the business climate deteriorated slightly, but the index remains at a high level. Contractors were slightly more satisfied with their current business situation, but the six-month business outlook clouded over somewhat.
President of the Ifo Institute
Results of the Ifo Business Survey in Germany in all details (in German)
Ifo Business Survey in Brief (in German)
Ifo Business Climate Germany (Index)
Business Situation and Expectations by Sector (Balances)
Ifo Business-Cycle Clock Manufacturing Industry
Ifo Business-Cycle Clock Industry and Trade
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.