German Ifo business climate index in April
According to a report from the Ifo Institute for Economic Research, the German Ifo Business Climate Index is at 102.1 so far in April as compared to 103.3 in March 2018. The index came in slightly below the market expectation of 102.7, and it was at its weakest reading since May 2017.
The manufacturer sentiment level fell to 24 in April as compared to 27.3 in March. The sentiment of wholesalers and retailers fell to 10.2 in April as compared to 14 in March. However, the sentiment of constructors rose to 19.8 in April as compared to 18.3 in March. The huge fall in Germany’s Ifo Business Climate Index is signaling that businesses aren’t fully optimistic about the economy. The rising uncertainty about global trade could affect the country’s demand outlook in the near future.
Performance of ETFs
The iShares MSCI Germany ETF (EWG), which tracks the performance of Germany (DAX-INDEX), rose 1.9% so far in April 2018. The iShares MSCI Germany Small-Cap ETF (EWGS), which tracks the performance of small-cap stocks in Germany, has risen 1.3% so far in April.
In the next part of this series, we’ll look at the Germany ZEW Economic Sentiment Index so far in April.