Germany Business Confidence


Germany: Business confidence inches up to seven-month high in February

February 23, 2015

The business confidence index, elaborated by the Ifo Institute, inched up from 106.7 in January to 106.8 in February, but fell short of market expectations of an increase to 107.7. Following the declines recorded between May and October in 2014, the index rose in February for a fourth consecutive month and continued to recover some of the lost ground. Now the index sits at the highest level in seven months.

According to the Institute, February’s print reflects that firms were slightly more positive regarding future business development, whereas they assessed their current situation slightly less optimistic than in the previous month. Business climate rose in the manufacturing and retailing sectors. However sentiment worsened slightly in wholesaling and in construction. Overall, the Ifo Institute commented that the reading suggests that, “[t]he German economy is proving robust in the face of geopolitical uncertainty.”

FocusEconomics Consensus Forecast panelists expect gross fixed investment to expand 1.6% in 2015, which is unchanged from last month’s forecast. In 2016, the panel sees investment growth decelerating 3.6%.

Author: Teresa Kersting, Economist

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Germany Business Confidence Chart

Germany Business Confidence February 2015

Note: Ifo Business Climate Index, 2000=100.
Source: Ifo Business Survey.

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