German Ifo business climate index so far in May 2018
According to a report provided by the Ifo Institute for Economic Research, the German Ifo Business Climate Index remained unchanged in May 2018 at 102.2. The index didn’t beat the market expectation of 102.7. However, after declining for the fifth consecutive month, the falling trend of this index stopped.
The sentiment of manufacturers has worsened to 24 so far in May as compared to 24.2 in April. The sentiment of constructors rose to 20.3 in May as compared to 19.8 in April. The sentiment of service providers increased to 26.9 so far in May as compared to 26 in April 2018.
Although German’s business climate remained flat in May, there wasn’t any further decline in this index during the month, which signals that economic activity, investors’ sentiment, and the business climate index improved at a softer rate in May. The rising political uncertainty seems to be affecting Germany’s overall economic performance in the same month.
Performance of ETFs
The iShares MSCI Germany ETF (EWG), which tracks the performance of Germany (DAX-INDEX), fell 3.9% so far in May 2018. Similarly, the iShares MSCI Germany Small-Cap ETF (EWGS), which tracks the performance of the small-cap stocks in Germany, fell 2.8% so far in May 2018.
In the next part of this series, we’ll look at the performance of the Germany ZEW Economic Sentiment Index so far in May 2018.