The Ifo Business Climate indicator for Germany fell to 88.6 in July of 2022, the lowest in over two years and below market expectations of 90.2 as higher energy prices and the threat of a gas shortage are weighing on the economy that is on the cusp of a recession. Germany's gas network regulator warned that if gas through the Nord Stream 1 pipeline continued to be pumped at only 40%, the country would need to take additional measures to reach the 90% of storage capacity set as a target to avert winter rationing. The index of the current situation went down to 97.7 in July from 99.4 the prior month, while the gauge assessing companies' expectations decreased to 80.3 from 85.8. Sentiment deteriorated across all sectors: manufacturing (-7.1 vs 0 in June); services (0.9 vs 10.9); trade (-21.6 vs -14.7); and construction (-17 vs -9.5). source: Ifo Institute

Business Confidence in Germany averaged 97.69 points from 1991 until 2022, reaching an all time high of 109.80 points in January of 1991 and a record low of 75.50 points in April of 2020. This page provides the latest reported value for - Germany Business Confidence - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Germany Ifo Business Climate Index - data, historical chart, forecasts and calendar of releases - was last updated on August of 2022.

Business Confidence in Germany is expected to be 90.70 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Germany Ifo Business Climate Index is projected to trend around 102.00 points in 2023 and 104.00 points in 2024, according to our econometric models.

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Germany Ifo Business Climate Index



Calendar GMT Actual Previous Consensus TEForecast
2022-06-24 08:00 AM Jun 92.3 93 92.9 92.5
2022-07-25 08:00 AM Jul 88.6 92.2 90.2 89.3
2022-08-25 08:00 AM Aug


Related Last Previous Unit Reference
Business Confidence 88.60 92.30 points Jul 2022
Capacity Utilization 85.40 85.50 percent Sep 2022
Ifo Expectations 80.30 85.80 points Jul 2022
Ifo Current Conditions 97.70 99.30 points Jul 2022

Germany Ifo Business Climate Index
In Germany, the IFO Business Climate Index measures entrepreneurs’ sentiment about current business situation and their expectations for the next 6 months. The survey is made by phone and covers 9,000 firms in manufacturing, the service sector, trade and construction. The Business Climate Balance is constructed as the difference between the percentage share of executives that are optimistic and the share that are pessimistic. This balance can take values between -100 (all responding firms assess their situation as poor and expect business to deteriorate) and +100 (all responding firms assessed their situation as good and expect an improvement in their business). For the calculation of the IFO Business Climate Index, the Balance is normalized to the average of a base year (currently 2015).
Actual Previous Highest Lowest Dates Unit Frequency
88.60 92.30 109.80 75.50 1991 - 2022 points Monthly
2015=100, SA

News Stream
Germany Business Climate Falls to Over 2-Year Low
The Ifo Business Climate indicator for Germany fell to 88.6 in July of 2022, the lowest in over two years and below market expectations of 90.2 as higher energy prices and the threat of a gas shortage are weighing on the economy that is on the cusp of a recession. Germany's gas network regulator warned that if gas through the Nord Stream 1 pipeline continued to be pumped at only 40%, the country would need to take additional measures to reach the 90% of storage capacity set as a target to avert winter rationing. The index of the current situation went down to 97.7 in July from 99.4 the prior month, while the gauge assessing companies' expectations decreased to 80.3 from 85.8. Sentiment deteriorated across all sectors: manufacturing (-7.1 vs 0 in June); services (0.9 vs 10.9); trade (-21.6 vs -14.7); and construction (-17 vs -9.5).
2022-07-25
German Business Climate Drops More than Expected
The Ifo Business Climate indicator for Germany fell to 92.3 in June of 2022 from a 3-month high of 93 in the previous month, below market expectations of 92.9 as the threat of gas shortages is of great concern to the German economy. The index of the current situation went down to 99.3 in June from 99.6 the prior month, while the gauge assessing companies' expectations decreased to 85.8 from 86.9. Manufacturing companies assessed the current situation as slightly less good and are considerably more pessimistic about the second half of the year. The chemical industry is thoroughly alarmed. In trade, businesses are much less satisfied with their current situation and the index of their expectations fell to its lowest level since April 2020. Wholesalers and retailers are equally troubled when they look to the coming months. On the other hand, the business climate continued to climb in construction and in the service sector.
2022-06-24
Germany Business Climate at 3-Month High
The Ifo Business Climate indicator for Germany unexpectedly rose to a 3-month high of 93 in May of 2022 from an upwardly revised 91.9 in April, above market expectations of 91.4. Both current conditions (99.5 vs 97.3 in April) and expectations (86.9 vs 86.8) improved. There are no signs of a recession at the moment in Germany, Europe's largest economy, though demand for industrial products has waned significantly and supply issues persist in industry and retail, according to Ifo economists.
2022-05-23