German Ifo Business Climate Index Increased by 0.3

The Germany Ifo Business Climate Index increased by 0.3 for the month of August. The highly regarded key indicator came in at 108.3 beating forecasts of 107.6 and July 108 record.

According to the report released by Ifo Institute for Economic Research, “the growing satisfaction with the current situation has again increased significantly”.

In manufacturing the business climate has deteriorated slightly due to the markedly cautious expectations of industrial companies. However, they are more satisfied with their current business situation. Fewer companies plan to increase production in the coming months.

In wholesaling, the index has fallen. The very good assessments of the business situation from the previous month were not matched. The expectations, however, are somewhat more optimistic.

In retailing, the business climate improved to its highest level since June 2011. The surveyed retailers were very satisfied with their current situation. The outlook for the coming months brightened further.

In construction, the index has risen to its highest level since March 2014. The contractors were particularly more satisfied with their current business situation. Their expectations brightened further.

Accordingly to Ifo institute, the Ifo Business Climate indicator for the German service sector has risen from 26.0 to 30.6 balance points in August.

This is a new historic peak. The assessments of the current situation given by the service providers have never been so good. In addition, they expect business to improve further. Correspondingly, they plan to hire additional staff.