Ifo Business Cli­mate In­dex con­tin­ues to rise in Ger­many

Financial Mirror (Cyprus) - - FRONT PAGE -

The Ifo In­sti­tut an­nounced its Business Cli­mate In­dex for in­dus­try and trade in Ger­many which it said rose to 105.5 points in De­cem­ber from 104.7 last month. Pos­i­tive as­sess­ments of the cur­rent business sit­u­a­tion re­mained un­changed and the out­look for the months ahead con­tin­ued to brighten. Drop­ping oil prices and a fall­ing euro ex­change rate are sea­sonal gifts to the Ger­man econ­omy.

In man­u­fac­tur­ing, the business cli­mate con­tin­ued to im­prove. Firms only slightly scaled back their as­sess­ments of the cur­rent business sit­u­a­tion. After three months of neg­a­tive fig­ures, the business out­look for the next half year turned pos­i­tive again in De­cem­ber. Ex­ports con­tinue to support Ger­man man­u­fac­tur­ing. In whole­sal­ing, the business cli­mate in­di­ca­tor rose for the third month in suc­ces­sion. This was par­tic­u­larly due to far more op­ti­mistic ex­pec­ta­tions, while whole­salers as­sessed the cur­rent business sit­u­a­tion as less favourable. In re­tail­ing, by con­trast, the business cli­mate clouded over. While re­tail­ers were more sat­is­fied with the cur­rent business sit­u­a­tion, they ex­pressed greater pes­simism about the months ahead.

In con­struc­tion, the business cli­mate de­te­ri­o­rated marginally, but nev­er­the­less re­mains at a very high level. Con­trac­tors slightly scaled back their favourable as­sess­ments of both the cur­rent business sit­u­a­tion and the business out­look.

The Ifo In­di­ca­tor for the ser­vice sec­tor rose in De­cem­ber to 25.6 bal­ance points, from 19.4 points in the pre­vi­ous month. Very favourable as­sess­ments of the cur­rent business sit­u­a­tion con­tin­ued to im­prove.

Ser­vice providers are also far more op­ti­mistic about fu­ture business de­vel­op­ments than in pre­vi­ous months, with ex­pec­ta­tions ris­ing to their high­est level since July 2011. Ser­vice providers, es­pe­cially in the ho­tel and restau­rant in­dus­try, still plan to fur­ther in­crease prices.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.