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Published: 2017-08-25 um 11:24 Uhr Options:   

ifo: Business Climate Index Edges Downwards

The ifo Business Climate Index edged downwards from 116.0 points last month to 115.9 points in August. But sentiment among German businesses remains very strong. The decline was due to slightly less positive assessments of the current business situation. Companies’ short-term business outlook, by contrast, improved. Germany’s economy remains on track for growth.

In manufacturing the index once again broke last month’s record. Companies were slightly less satisfied with their current business situation, which nevertheless remains strong. They expressed greater optimism about the short-term outlook. In the automotive sector cartel allegations and the diesel affair have not been reflected in the survey results to date, with the business climate index remaining at a very high level.

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In wholesaling the business climate deteriorated slightly. This was due to markedly poorer assessments of the current business situation. Business expectations, by contrast, were adjusted slightly upwards. In retailing the index dropped significantly. Retailers were clearly less satisfied with their current business situation. Their optimism about the short-term business outlook also waned. Car dealers were largely responsible for the downswing.

In construction the index continued its record-breaking run. Contractors were far more satisfied with their current business situation. They also expect business to pick up in the months ahead.

More information: www.ifo.de

ifo Institut für Wirtschaftsforschung e.V., München

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