Ifo Export Climate for July 2014
Ifo Export Climate Indicator Falls
The Ifo Export Climate indicator fell in July to 0.35 index points after having stood in the two previous months at 0.40 index points. The moderate decrease was due to the deterioration of business and consumer confidence abroad.
Especially in Europe, there was a slight decline in confidence. In Austria and in the United Kingdom, in particular, the mood worsened among businesses and consumers. In Belgium, Italy, Spain, France, Poland and the Czech Republic, the assessments weakened but only to a small extent. In contrast, in China and the US, there was a significant increase in business confidence. Russia is a special case: here business confidence rose for the third month in succession. The sanctions policy of the EU and other countries has likely led to a shift to domestic production in Russia.
Germany’s price competitiveness improved slightly compared to June.
The Ifo Export Climate gauges company and consumer confidence and is an indicator for the price competitiveness of German companies versus 37 trade partners based on consumer price indices. Indicators from 41 countries, weighted by German export figures, are used to assess company and consumer confidence. 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.