The Ifo Business Climate Index in Germany rose to 96.3 in December 2019 from a revised 95.1 in the previous month, easily beating market expectations of 95.5. That was the highest reading since June, boosted by an improvement in companies' assessment of the current situation (98.8 vs 98.0 in November), as well as their expectations (93.8 vs 92.3). Across sectors, sentiment improved among manufacturers (-5.0 vs -5.8) and service providers (21.3 vs 17.4), but deteriorated among traders (0.0 vs 0.9) and constructors (17.9 vs 20.3). Business Confidence in Germany averaged 98.09 points from 1991 until 2019, reaching an all time high of 109.80 points in January of 1991 and a record low of 80.10 points in March of 2009. source: Ifo Institute
Business Confidence in Germany is expected to be 95.90 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 99.00 in 12 months time. In the long-term, the Germany Ifo Business Climate Index is projected to trend around 102.00 points in 2020, according to our econometric models.