ito business climate in germany

7/24/2019 Ito Business climate in Germany

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Ifo Business Climate GermanyResults of the Ifo Business Survey for October 2015

Ifo Business Climate Index Declines Only Slightly

The Ifo Business Climate Index for German industry and trade fell to 108.2 points in October, from108.5 points in September. Companies were slightly less satisfied with their current businesssituation than in September. Optimism with a view to future business developments neverthelesscontinued to grow. The German economy is proving remarkably resilient in view of this autumnsmultiple challenges.

Indeed the Volkswagen scandal has had no impact on the German automotive industry. The climateindex for the automotive sector even continued to rise this month. Assessments of the current businesssituation and business expectations both improved. Firms plan to ramp up production. Exports, however,are not expected to provide further stimuli.

In manufacturing on the whole, however, the business climate index fell for the third month insuccession. Manufacturers scaled back their very good assessments of the current business situation.

They nevertheless expect business to pick up in the near future. Capacity utilisation rose marginally to84.4%.

In wholesaling the business climate remained unchanged. While wholesalers slightly scaled back theirvery good assessments of the current business situation, they expressed greater optimism about themonths ahead. In retailing the business climate index fell. This was mainly due to markedly less

favourable assessments of the current business situation. Also, business expectations deterioratedslightly.

In construction, the business climate improved for the third month in succession. While contractorsassessed their current business situation somewhat less favourably, they were more optimistic about themonths ahead.

Hans-Werner SinnPresident of the Ifo Institute

Germany (Index, 2005 = 100, seasonally adjusted)

Month/year 10/14 11/14 12/14 01/15 02/15 03/15 04/15 05/15 06/15 07/15 08/15 09/15 10/15

Climate 103.6 104.8 105.7 106.8 106.8 107.9 108.6 108.5 107.6 108.0 108.4 108.5 108.2

Situation 108.0 109.4 110.1 111.9 111.5 112.3 114.2 114.4 113.3 114.0 114.8 114.0 112.6

Expectations 99.3 100.3 101.5 101.9 102.4 103.8 103.4 103.0 102.1 102.4 102.2 103.3 103.8

Source: Ifo Business Survey.

For long time-series in Excel format consultwww.cesifo-group.de/langereihen.
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Ifo Business Climate Germany (Balances, seasonally adjusted)Month/year 10/14 11/14 12/14 01/15 02/15 03/15 04/15 05/15 06/15 07/15 08/15 09/15 10/15

Trade and Industry 0.5 2.8 4.6 6.7 6.8 8.9 10.2 10.1 8.2 9.0 9.7 10.1 9.3

Manufacturing 2.6 4.2 7.5 9.4 9.5 12.6 14.2 13.6 11.1 11.4 11.1 10.1 9.7

Construction -3.7 -3.2 -5.2 -5.6 -5.7 -7.6 -5.2 -4.7 -3.6 -4.2 -2.6 0.3 0.8

Wholesaling 0.2 6.0 7.3 8.6 8.4 10.3 12.7 10.0 7.7 14.2 13.3 13.7 13.7

Retailing -5.5 -2.2 -3.9 3.4 3.5 5.3 2.8 7.0 5.8 4.1 10.8 14.7 10.9


Explanatory note: The Ifo Business Climate Index is based on ca. 7,000 monthly survey responses from firms inmanufacturing, construction, wholesaling and retailing. The firms are asked to give their assessments of the currentbusiness situation and their expectations for the next six months. They can characterise their situation as good,satisfactory or poor and their business expectations for the next six months as more favourable, unchanged or moreunfavourable. The balance value of the current business situation is the difference between the percentages of theresponses good and poor; the balance value of the expectations is the difference between the percentages of theresponses more favourable and more unfavourable. The business climateis a transformed mean of the balances of the

business situation and the expectations. For the purpose of calculating the index values,the transformed balances are allnormalised to the average of the year 2005.


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Ifo Business Climate in the German Service SectorResults of the October 2015 Ifo Business Survey

Ifo Business Climate Indicator Hits New Record High

The Ifo Business Climate indicator for the German service sector hit a new record high of 32.4 balancepoints in October versus 30.5 balance points in September. The number of positive reports ofexpectations continued to climb, reaching their highest level since December 2010. By contrast, serviceproviders revised their very good assessments of the current business situation downwards. Personnelplans remain expansive.

Hans-Werner SinnPresident of the Ifo Institute

German Service Sector (balances, seasonally adjusted)

Month/Year 10/14 11/14 12/14 01/15 02/15 03/15 04/15 05/15 06/15 07/15 08/15 09/15 10/15

Climate 22.9 20.2 26.8 25.7 23.7 24.3 23.9 26.7 28.5 26.1 30.8 30.5 32.4

Situation 31.7 29.8 35.0 34.5 29.6 34.1 37.0 39.1 39.2 38.0 42.0 42.9 40.7

Expectations 14.4 10.9 18.9 17.2 18.0 15.0 11.6 14.9 18.3 14.8 20.1 18.7 24.4


For long time-series in Excel format consultwww.cesifo-group.de/langereihen.

Explanatory note: The Ifo Business Survey of the service sector is based on ca. 2,500 monthly survey responses fromfirms in key segments of the tertiary sector, especially business-oriented segments (excl. distribution, financial services,Leasing, insurance and government). The survey is conducted and calculated in the same way as the Ifo Business Surveyof industry and trade. The indicator for the Business Climate in the service sector has not yet been incorporated into the IfoBusiness Climate Index for industry and trade.
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ito business climate in germany

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