Germany’s Ifo Business Climate Index in December
According to a report provided by the Ifo Institute for Economic Research, the German Ifo Business Climate Index is at 117.2 so far in December compared to 117.6 in November 2017. The index isn’t beating the market expectation of 117.5.
The gradual improvement in the Germany Ifo business climate index is signaling that the business condition is improving. However, in December 2017, it showed some weakness, mainly due to weaker client demand. Rising uncertainty about the government structure in Germany is mainly hampering its economic activity and market performance.
The sentiment for manufacturers stood at 31.7 in December compared to 33.1 in November 2017. The sentiment for wholesalers was 22.5 in December compared to 25.0 in November 2017. However, the sentiment for construction improved to 18.9 in December compared to 17.2 in November. The sentiment for retail rose to 15.7 in December compared to 13.1 in November 2017.
Performance of ETFs
The iShares MSCI Germany (EWG), which tracks the performance of Germany (DAX-INDEX), has fallen 0.2% so far in December 2017. However, the iShares MSCI Germany Small-Cap (EWGS), which tracks the performance of Germany’s small-cap stocks, has risen 1.5% so far in December as of December 26, 2017.
In the next part of this series, we’ll look at the performance of the Germany ZEW Economic Sentiment Index in December 2017.