German business climate worsens more than expected in April

April 24, 2018 12:11 pmComments Off on German business climate worsens more than expected in AprilViews: 8

German business climateGerman business climate worsens more than expected in April, according to IFO data. The index, which measures moods in the largest economy in Europe, drops to 102.1 points on a consensus forecast for the market of 102.8 points. For comparison, in March, the benchmark reached 103.3 points.

The index measuring current business conditions fell to 105.7 points versus 106.6 points measured in March. The future business climate expectations also deteriorate to 98.7 points against 100 points in the third month of the year.

The business moods are cooling down among manufacturers, service providers and retailers, but are improving among builders.

Ifo’s survey is made among 7,000 business representatives, with the services sector being included for the first time in the business climate index in April.

Earlier this month, another key benchmark for Germany’s economy has shown negative values ​​for the first time since July 2016. The Business Climate Index of ZEW Center for European Economic Research reached 8.2 points in April, indicating a decline of 13.3 points compared to March.

In its April report, the Bundesbank indicated that the boom of the German economy continued, although gross domestic product (GDP) growth in the first quarter of 2018 could be much weaker than in the previous quarters.

The Federal Statistical Office plans to publish its first estimate of GDP growth for the first quarter of May 15th.

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