Business & Economy

GERMANY: Ifo Business Climate Index reaches record high

26 July, 2017

Sentiment among German businesses is euphoric, the Munich-based ifo research centre said, with its Business Climate Index rising from 115.2 points last month to 116.0 points in July, hitting a new record high for the third month in succession.

Companies’ satisfaction with their current business situation reached its highest level since Germany’s reunification. Their short-term business outlook also improved and Germany’s economy is powering ahead, the ifo Institute said.
In manufacturing, the index hit a new record high. Assessments of the current business situation scaled unprecedented heights. Manufacturers once again expressed greater optimism about the short-term future. Capacity utilisation rose significantly by 0.7 percentage points to 86.7%.
In wholesaling, the business climate improved again on the back of far more optimistic business expectations. Assessments of the current business situation, by contrast, edged downwards from last month’s record highs. In retailing the index dropped. Retailers were far less satisfied with their current business situation. Their optimism about the short-term business outlook also waned. Both components, however, remain at a very high level.
In construction, the index rose to a new record high. Contractors assessed their current business situation as very good and expect business to pick up in the months ahead.