Wednesday, 25 January 2012

Ifo - German Business Climate Index January 2012 shows third rise in a row


Every month the responses of over 7000 businesses to the Ifo Business Survey, the confidence indicator frequently referred to as the Ifo Index is published. The January 2012 results show the 3rd rise in a row.

Ifo Business Climate Continues to Rise
Results of the January 2012 Ifo Business Survey

The Ifo Business Climate for trade and industry in Germany improved for the third time in succession in January. Although companies assess the current business situation as less favourable than in December, their business expectations have brightened considerably. The German economy has started the year positively.

The business climate improved in manufacturing. Manufacturers see their current business situation as slightly improved and their business outlook as clearly more favourable than in the previous month. Export expectations and personnel planning are also somewhat more positive once again. Capacity utilization in manufacturing is currently slightly lower than in autumn 2011. However, use of equipment and machinery remains above average.

In retailing the business climate index fell. The business situation here is no longer as favourable as it was in December. Moreover, retailers are more sceptical about their short-term business outlook. In wholesaling the business climate deteriorated slightly. The wholesalers surveyed continue to assess their current business situation as very positive, but less favourable than last month. Their business expectations are once again slightly more confident.

The business climate in construction improved for the third month in succession. The current business situation, however, is no longer as favourable as in the previous month. The constructors surveyed are nevertheless significantly more confident about their six-month business outlook.

Hans-Werner Sinn
President of the Ifo Institute



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