Germany Business Confidence December 2017

Germany

Germany: Business confidence unexpectedly drops in December

December 19, 2017

German business confidence decreased from a revised 117.6 points in November (previously reported: 117.5 points) to 117.2 points in December, undershooting market expectations. The downturn may be linked to the current political uncertainty, following the collapse of the so-called “Jamaica” coalition talks on 19 November when the FDP party pulled out of negotiations. The indicator remains, however, firmly entrenched above the crucial 100-point mark and near an all-time high, signaling optimism among German businesses.

Looking at the result in more detail again revealed a mixed picture: Businesses reported more upbeat sentiment regarding current business conditions than in the prior month, but they became less optimistic about future business conditions. The downturn was led by the manufacturing and wholesaling sectors, which recorded a worsening in sentiment, while the construction and retailing sectors recorded an increase in sentiment.

FocusEconomics Consensus Forecast panelists expect gross fixed investment to expand 3.8% in 2018, which is up 0.2 percentage points from last month’s forecast. In 2019, the panel sees investment growth reaching 3.2%.


Author:, Economist

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Germany Business Confidence December 2017

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


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