Ifo Export Climate for December 2013
Ifo Export Climate Indicator on Upward Path
The Ifo Export Climate Indicator was significantly higher in November and December 2013 than in previous months. The indicator reached 0.23 points in November and 0.20 points in December, up from 0.09 in October. The higher values in the last two months of the year were the result of improvements in companies’ faith in international business compared to October. Price competitiveness, on the other hand, deteriorated in both months.
European countries were mainly responsible for the improvement in the world economic climate, and especially Austria, Belgium, Great Britain, Portugal, Spain and the Czech Republic. In addition to Europe, the USA also provided impulses to trade. In all of these countries it was primarily companies that were in a more positive mood. Largely subdued activity in Asia was also reflected in mood indicators, which remained at below average levels.
Germany’s price competitiveness deteriorated in November and December by a total of 3.3% versus the same months of last year.
The Ifo Export climate is composed of the world economic climate and an indicator for the price competitiveness of the German economy compared to that of 36 trade partners (excluding consumer price indices). The world economic climate summarises company and consumer confidence in 41 countries weighted by German export figures. The countries surveyed account for 90 percent of Germany's export markets and seasonally-adjusted figures are used to calculate the Ifo Export Climate. Price competitiveness comes into play in the log differences. The weightings given to price competitiveness and the world economic climate in the Ifo Export Climate are 0.12 and 0.88 respectively.
The Ifo Export Climate is calculated exclusively for the WirtschaftsWoche.