Monday, January 25, 2016

Ifo Index: Business Climate falls to lowest level in nearly a year – ABC Online

Monday, 01.25.2016, 11:38
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The mood in the German company has deteriorated significantly in January.

The Ifo business climate, Germany’s most leading indicator, fell to the previous month by 1.3 points to 107.3 meters, such as the Munich Institute announced on Monday. This is the lowest level since February 2015. Bank economists were expecting a slowdown, but only on 108.4 points. The fiscal situation deteriorated only slightly, the outlook for the coming half year grew dim, however, a considerably.

“The German economy looks shocked into the new year,” Ifo President Hans-Werner Sinn commented on the survey result. In the manufacturing sector, the service sector and the construction sector, the business climate deteriorated. In wholesale it improved contrast, retail sentiment remained virtually unchanged. Reach

economic concerns boardrooms

“It looks as if the global events ultimately reached the boardrooms of German companies” commented Carsten Brzeski, chief economist of the direct bank ING-Diba. The business expectations had been impacted by the turbulence in financial markets and renewed concerns about the slowdown in growth in China. The Ifo expectations indicator fell by 2.2 points to 102.4 points. That’s the lowest level since August 2015.

Brzeski pointed out that starting to close the gap between the pullback last weaker economic data and robust survey results. In recent weeks, especially figures from the industry were disappointed. The manufacturing sector is suffering due to its export orientation stronger among the emerging economies weakness than about the service.

Current growth robust

Both the ING-Diba and the British research firm Capital Economics represent but the considerably weaker drop out of the situation assessment. The component fell 0.3 meters to 112.5 points. This value implies that the actual growth rate of the German economy for the time being remain solid, commented Jonathan Loynes of Capital economcs.

In the financial markets, the first reaction was to the deterioration in sentiment of behavior. While the stock market dipping slightly, both the euro and Bunds showed initially little moved

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