German Ifo business climate index in March
According to the Ifo Institute for Economic Research, the German Ifo business climate index is currently at 114.7, compared with 115.4 in February 2018. The index was slightly below the market expectation of 114.8, and marked the weakest reading since April 2017.
Between February and March 2018, manufacturer sentiment has fallen to 26.5 from 28.1, wholesaler sentiment has remained at 20.7, and retailer sentiment has fallen to 4.7 from 11.1. However, construction sentiment has risen to 17.9 from 15.9.
The German Ifo business climate index’s huge fall suggests political uncertainty may be affecting business climate. The recent trade war talks may also be hampering the global economy and affecting market movement.
The iShares MSCI Germany ETF (EWG), which tracks the performance of Germany’s economy, has fallen 3.4% in March 2018. Similarly, the iShares MSCI Germany Small-Cap ETF (EWGS), which tracks German small-cap stocks, has fallen 2%. In the next part of this series, we’ll look at the German ZEW economic sentiment index’s performance so far in March 2018.