Ifo Export Climate for January 2017
Ifo Export Climate Begins Year by Rising
The Ifo Export Climate rose to 0.72 points in January 2017 from 0.59 index points in December 2016. The improvement in the export climate was due to higher corporate and consumer confidence abroad. Price competiveness in the German economy, by contrast, had a slightly dampening effect.
Positive stimuli for the Ifo Export Climate came from companies and households in Austria, the Netherlands and the USA. All three countries also positively influenced the export climate back in 2016. British companies expressed greater confidence about the future in January. Assessments by Chinese companies, by contrast, continued to deteriorate, after following an upward trend between spring 2016 and November 2016.
Price competitiveness in January declined, mainly due to the effective appreciation of the euro. Competiveness versus the rest of the euro area, by contrast, remained unchanged.
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.