The Ifo business climate index rose in January from 105.5 to 106.7 points, such as the Munich-based Ifo Institute announced on Monday. This was the third consecutive increase, which is considered a reliable indicator of a change for the better.
Just the export-oriented industry to help the current framework, because they make exports cheaper. Falling gas prices help about the sale of larger cars. “The companies were significantly more satisfied with their current business situation. In addition, they have regained a majority are optimistic about the future development. The German economy has good start to the new year,” said Ifo chief Hans-Werner Sinn.
The question extent to which the turbulence surrounding the euro and the spectacular decision of the European Central Bank (ECB) provide for the purchase of government bonds uncertainty will probably answer only the Ifo index next month. The index is the most important early indicator of the German economy. It is calculated monthly by the survey of around 7,000 companies from industry, retail, wholesale and from the construction industry.
For January, the Ifo Institute, however, the calculation of the value had changed. In contrast to previous practice, the effects of weather are like an extremely hard winter no longer be deducted from the survey results. This should be better with comparable international statistics, where the seasonal variations are also evident the Ifo index. As part of the conversion, the data of the previous years change. However, the index value for the previous month remains the same.
The companies rated in the first month of the year not only their current situation much better, they are more confident than in December for the next few months. The Ifo index is calculated monthly by the survey of about 7000 companies