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ermany IFO Institute: Hard Brexit Is By No Means Yet Off The Table -The Economic Weak Phase Is Set To Continue In Germany -Trump’s Threat Of Punitive Tariffs Not Yet Reflected In Sentiment Figures
ifo Business Climate index falls
Worries in the German business world continue to grow. The ifo Business Climate Index fell from 99.3 points (seasonally adjusted) in January to 98.5 points in February. This is the lowest level since December 2014. Companies again assessed their current business situation somewhat less favorably. Pessimism regarding the six–month outlook has also increased. These survey results as well as other indicators point to economic growth of 0.2 percent in the first quarter. The economic situation in Germany remains weak.
In manufacturing, the index has fallen for the sixth time in succession. Companies have revised their assessment of the current situation markedly downwards. Nevertheless, a clear majority continues to report a positive business situation. However, with regard to the business outlook, pessimism is growing.
In the services, the business climate has deteriorated significantly. The service providers rated their business situation somewhat less favorably. With regard to the coming months, only few companies still expect an improvement.
In distribution the index rose slightly. This was due to somewhat less pessimistic business expectations. The firms assessed the current business situation less favorably. Whereas the climate improved in the retail trade, it worsened among wholesalers.
The business climate index deteriorated in construction. This was due to less favorable assessments of the business situation. However, expectations were revised slightly upwards.
