Ifo Business Climate Germany - Results of the July 2013 Ifo Business Survey
Ifo Business Climate Index Edges Upwards
Jul 25, 2013
The Ifo Business Climate Index for industry and trade in Germany rose for the third time in succession. Assessments of the current business situation are more positive than last month. Although the six-month business outlook weakened slightly, firms remain cautiously optimistic with regard to their future business outlook. Conditions in the German economy remain fair.
The business climate indicator in manufacturing rose slightly. Satisfaction with the current business situation increased for the third month in succession. Business expectations declined minimally, but remain positive. Machinery capacity utilisation rose by more than one percentage point. After last month’s sharp increase, export expectations fell somewhat. Firms nevertheless expect expansionary impulses from export business.
The business climate index rose at both levels of trade. In retailing firms are far more satisfied with their current business situation. Expectations reached their highest level since April 2012. Wholesalers also assessed their current business situation more positively than last month. However, they were more sceptical about future business developments.
In construction the business climate indicator continued to fall. Contractors are slightly more cautious about future business developments than last month. They are also somewhat less positive about their current business situation, which nevertheless remains very good.
Prof. Dr. Kai Carstensen
Director of the Ifo Center for Business Cycle Analysis and Surveys
Ifo Center for Business Cycle Analysis and Surveys