GERMANY: Ifo business climate at July 2014 high

The Ifo Business Climate Index for German trade and industry rose to 107.9 points in March from 106.8 points the previous month. The index reached its highest level since July 2014. Companies were more satisfied with their current business situation. They also expressed far greater optimism about future business developments. The German economy continues to expand.

In manufacturing the climate indicator rose once again. Manufacturers were more satisfied with their current business situation. They were also clearly more optimistic about future business developments. Production plans reached their highest level since May 2014.
In wholesaling the business climate also improved. Assessments of the current business situation were far more favourable, while wholesalers scaled back their slightly optimistic business expectations. In retailing the business climate also continued to brighten. After falling in February, the business situation indicator rose again. Retailers expressed greater confidence in future business developments.
In construction, by contrast, the business climate indicator continued to fall, but remains at a high level. Contractors assessed both their current business situation and their business outlook less favourably than last month. There is still a boom in construction, but it is weakening.