The Ifo Business Climate indicator for Germany dropped to 97.7 in October 2021, the lowest level since April and slightly below market expectations of 97.9, as supply bottlenecks continued to weigh on Europe's largest economy. Expectations for the coming months were significantly more pessimistic (95.4 vs 97.4 in September), while companies' assessments of their current situation were also less positive (100.1 vs 100.4). Sentiment deteriorated among manufacturers (17.2 vs 20.0), service providers (16.5 vs 19.1), and traders (3.7 vs 9.0). Meanwhile, confidence among constructors improved slightly (12.9 vs 11.1). source: Ifo Institute

Business Confidence in Germany averaged 97.79 points from 1991 until 2021, reaching an all time high of 109.80 points in January of 1991 and a record low of 75.50 points in April of 2020. This page provides the latest reported value for - Germany Business Confidence - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Germany Ifo Business Climate Index - data, historical chart, forecasts and calendar of releases - was last updated on October of 2021.

Business Confidence in Germany is expected to be 97.10 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Germany Ifo Business Climate Index is projected to trend around 106.00 points in 2022 and 102.00 points in 2023, according to our econometric models.

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Germany Ifo Business Climate Index


Calendar GMT Actual Previous Consensus TEForecast
2021-09-24 08:00 AM Sep 98.8 99.6 98.9 98.5
2021-10-25 08:00 AM Oct 97.7 98.9 97.9 98.4
2021-11-24 09:00 AM Nov 97.7 96.5


News Stream
German Business Morale Deteriorates Further
The Ifo Business Climate indicator for Germany dropped to 97.7 in October 2021, the lowest level since April and slightly below market expectations of 97.9, as supply bottlenecks continued to weigh on Europe's largest economy. Expectations for the coming months were significantly more pessimistic (95.4 vs 97.4 in September), while companies' assessments of their current situation were also less positive (100.1 vs 100.4). Sentiment deteriorated among manufacturers (17.2 vs 20.0), service providers (16.5 vs 19.1), and traders (3.7 vs 9.0). Meanwhile, confidence among constructors improved slightly (12.9 vs 11.1).
2021-10-25
Germany Ifo Business Climate Continues to Fall
The Ifo Business Climate indicator for Germany declined for a 3rd consecutive month to 98.8 in September of 2021 from an upwardly revised 99.6 in August and compared to market forecasts of 98.9. It is the lowest reading in 5 months mainly due to ongoing supply shortages in the industrial sector. "Problems in the procurement of raw materials and intermediate products are putting the brakes on the German economy. Manufacturing is experiencing a bottleneck recession", Ifo President Clemens Fuest said in a statement. Also, there are no signs such constrains will ease and the supply crisis is expected to last until at least the end of next year, according to Ifo economists.
2021-09-24
Germany Business Climate at 3-Month Low
The Ifo Business Climate indicator for Germany fell to a 3-month low of 99.4 in August of 2021, well below market forecasts of 100.4. “The mood in the German economy has clouded over again. Supply bottlenecks for intermediate products in manufacturing and worries about rising infection numbers are putting a strain on the economy”, Ifo President Clemens Fuest said. The expectations gauge declined sharply to 97.5 from 101 as rising coronavirus infections dampened expectations in tourism and hospitality. Export expectations have also fallen but remain at a relatively good level. In contrast, the current conditions subindex increased to 101.4 from 100.4. Most industrial businesses complained about supply chain bottlenecks and many companies in both manufacturing and retail sectors want higher prices to cover rising costs.
2021-08-25

Germany Last Unit Reference Previous Highest Lowest
Business Confidence 97.70 points Oct/21 98.90 109.80 75.50
Capacity Utilization 87.10 percent Sep/21 86.20 88.80 70.30


Germany Ifo Business Climate Index
In Germany, the IFO Business Climate Index measures entrepreneurs’ sentiment about current business situation and their expectations for the next 6 months. The survey is made by phone and covers 9,000 firms in manufacturing, the service sector, trade and construction. The Business Climate Balance is constructed as the difference between the percentage share of executives that are optimistic and the share that are pessimistic. This balance can take values between -100 (all responding firms assess their situation as poor and expect business to deteriorate) and +100 (all responding firms assessed their situation as good and expect an improvement in their business). For the calculation of the IFO Business Climate Index, the Balance is normalized to the average of a base year (currently 2015).