Summary: ifo business climate index increases for fifth consecutive month; a little under expectations; German economy stabilizing “despite rising infection numbers”;
Following a recession in 2009/2010, ifo Institute’s business climate index largely ignored the European debt-crisis of 2010-2012, remaining at average-to-elevated levels through to early-2020. However, the index was quick to react in the March survey, falling precipitously. The rebound which began in May has continued so far.
According to the latest figures released by the Institute, its business climate index increased for a fifth consecutive month to 93.4 in September. The reading was a little below the expected reading of 93.9 but 0.9 points below August’s final reading of 90.4. The average reading since January 2005 is just above 97.
The expectations index continued to increase, rising from August’s figure of 97.5 to 97.7 in September, a little below the expected figure of 98.0. The current situation index rose from 87.9 to 89.2.
Clemens Fuest, the president of the ifo Institute, said companies “also expect their business to recover further. The German economy is stabilizing despite rising infection numbers.”