German Ifo Business Climate Index
According to the German Ifo Institute for Economic Research, the Ifo Business Climate Index for Germany (EWG) rebounded in March from a 14-month low in February. The index rose to 106.7 in March—compared to 105.7 in February. It’s also above the market expectations of 106.0.
This index measures the sentiment towards the current business situation and the expectations for the next six months. This survey includes 7,000 firms in the manufacturing, construction, wholesale, and retail sectors. The index is important for investors because it shows the whether the firms are optimistic or pessimistic about the current business climate.
Germany is one of the major economies in the Eurozone (EZU) (FEZ). It’s also one of the major exporting countries in the world. As the business climate increases in the economy, we can see a rise in domestic and overseas demand. Germany’s major export-oriented stocks such as Volkswagen (VLKAY), Daimler (DDAIF), and Siemens (SIEGY) will benefit from the increased business climate.
In the next part, we’ll analyze the performance of the US gross domestic product in 4Q15.