The ifo Business Climate Index: what decision-makers should watch
Briefing: The ifo index is based on a monthly survey of around 9,000 companies in Germany.
The ifo index is based on a monthly survey of around 9,000 companies in Germany.
For executives, the main question regarding “The ifo Business Climate Index” is their own exposure: which costs, revenues and financing conditions depend on it, directly or indirectly?
A proven approach is to run scenarios and monitor leading indicators regularly. That puts decisions on a solid footing without reacting to every headline.
Anyone looking into “The ifo Business Climate Index” quickly encounters a wealth of figures and opinions. For a sober assessment it pays to go to primary sources: official statistics, publications from the responsible authorities and companies' own reports.
The key is to separate short-term swings from structural developments. Individual monthly readings can be distorted by one-off effects; trends over several quarters are more telling.