ifo Business Climate Index Falls Again
Munich, 24 April 2018 – High spirits among German businesses have evaporated. The ifo Business Climate Index for Germany fell to 102.1 points in April from 103.3 points in March. The indicator for the current business situation fell and expectations also deteriorated. The German economy is slowing down.
In manufacturing the business climate deteriorated for the third consecutive month. Assessments of the current business situation declined but nevertheless remain at a high level. Business expectations dropped to their lowest ebb since August 2016. Capacity utilisation fell by 0.3 percentage points to 87.7 percent. However, it remains above its long-term average of 83.6 percent.
In the service sector, the business climate index dropped markedly. This was primarily due to far less optimistic business expectations. Assessments of the current business situation were also poorer than last month, but remain at a very high level.
The business climate index also fell in wholesale and retail trade. Traders were less satisfied with both their current business situation and their short-term business outlook.