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IFO Business Climate in industry and trade



Economical indicator, The Ifo Business Climate Index is a widely observed early indicator for economic development in Germany. Every month the Ifo Institute surveys more than 7,000 enterprises in west and east Germany on their appraisals of the business situation (´good´ / ´satisfactory´ / ´poor´) and their expectations for the next six months (´better´ / ´same´ / ´worse´). The replies are weighted according to the importance of the industry and aggregated. The percentage shares of the positive and negative responses to both questions are balanced, and a geometric mean is formed from the balances, divided according to east and west Germany. The series of balances thus derived are linked to a base year (currently 1991) and seasonally adjusted.



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