The Ifo Business Climate Index in Germany fell by 0.5 points from a month earlier to 97.4 in June 2019, the lowest level since November of 2014, and compared with market expectations of 97.2. The business expectations sub-index slumped to 94.2 from a downwardly revised 95.2 in May; while the gauge of current conditions edged up to 100.8 from an upwardly revised 100.7 in the prior month. Sentiment deteriorated among manufacturers (1.5 vs 3.9 in May), service providers (20.0 from 21.0) and constructors (22.9 from 24.3); while confidence among wholesalers & retailers improved (7.9 from 5.4). Business Confidence in Germany averaged 98.14 Index Points from 1991 until 2019, reaching an all time high of 109.80 Index Points in January of 1991 and a record low of 79.90 Index Points in March of 2009.
Business Confidence in Germany is expected to be 97.00 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Business Confidence in Germany to stand at 103.00 in 12 months time. In the long-term, the Germany Ifo Business Climate Index is projected to trend around 102.00 Index Points in 2020, according to our econometric models.