The Ifo Business Climate Index in Germany dropped 1.3 points from a month earlier to 97.9 in May 2019, the lowest level since November 2014 and below market expectations of 99.1. The gauge of current conditions slumped to 100.6 from 103.4 in April, while the business expectations sub-index was unchanged at 95.3. Sentiment deteriorated among manufacturers (4.0 vs 4.1), service providers (20.9 vs 26.4), and wholesalers & retailers (5.4 vs 7.1); while confidence among constructors improved (24.4 vs 21.7). 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 79.80 Index Points in March of 2009.
Business Confidence in Germany is expected to be 97.50 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.