German ifo Business Climate

The German ifo Business Climate is a monthly survey of firms in Germany’s manufacturing, construction, trade and services sectors. It combines their assessment of current business conditions with expectations for the next six months. The index is a sentiment indicator: it does not measure GDP or industrial output directly. Markets compare the headline with the forecast and review the current-situation and expectations components, which can point in different directions. The survey is useful as a timely signal for German and euro-area business conditions, but should be read with production, orders and purchasing-manager data.