2024 - Germany: rise in the Ifo index in March

(CercleFinance.com) – The Ifo business climate index in Germany is improving, but continues to point towards recession.

Although the Ifo business climate index rose quite sharply in March, most of the improvement is in the volatile component of expectations and remains at an exceptionally low level says Capital Economics.

The rise in the Ifo Business Climate Index (BCI), which rose from an upwardly revised 85.7 in February to 87.8 in March, is well above expectations (consensus 86, 0; EC 85.5). It is at its highest level since last June.

However, the improvement in March was mainly due to a jump in the expectations component (from 84.1 to 87.5) while the current conditions index, which has a better relationship with GDP growth, improved. is improved to a lesser extent (from 86.9 to 88.1) underlines Capital Economics.

Indexes for manufacturing, services and retail all rose substantially, although the construction sector saw only slight improvement and remained at an extremely low level.

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