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ifo Business Climate Index Falls

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Ifo Business Climate - Results of the ifo Business Survey for April 2019 Press release for ifo Business Climate Germany (PDF, 316 KB) The mood among German managers became slightly gloomier this month. The ifo Business Climate Index fell from 99.7 points (seasonally adjusted) in March to 99.2 points in April. Companies are less satisfied with their current business situation. March’s gentle optimism regarding the coming months has evaporated. The German economy continues to lose steam. In manufacturing, the business climate has again worsened markedly. Once more, companies rated their current situation less favorably. Pessimism has also grown regarding the coming months. Capacity utilization fell by

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ifo Business Climate - Results of the ifo Business Survey for April 2019

The mood among German managers became slightly gloomier this month. The ifo Business Climate Index fell from 99.7 points (seasonally adjusted) in March to 99.2 points in April. Companies are less satisfied with their current business situation. March’s gentle optimism regarding the coming months has evaporated. The German economy continues to lose steam.

In manufacturing, the business climate has again worsened markedly. Once more, companies rated their current situation less favorably. Pessimism has also grown regarding the coming months. Capacity utilization fell by 0.8 percentage points to 85.4 percent. This is still higher than the long-run average of 83.7 percent.

the services, the index has risen slightly due to more optimistic expectations. However, service providers rated their current situation somewhat less favorably, although still at a high level.

In trade, the business climate has weakened somewhat. Companies still saw their current situation as very positive, but made downward corrections both to this assessment and to their business expectations. This development was driven by retail trade. Among wholesalers, the index in fact rose slightly.

In construction, the business climate index rose once again. Companies were considerably more satisfied with what was already a very good business situation. However, doubts are growing that the construction boom will continue.

Clemens Fuest
Clemens Fuest took over from Hans Werner Sinn as chairman of the IFO Institute in April 2016. He is professor at the Faculty of Economics of the University of Munich.

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