empty
 
 

2018.04.2408:24:00UTC+00German Business Confidence At 13-Month Low

German business confidence deteriorated more-than-expected to a 13-month low in April on trade tensions, survey data from the Munich-based Ifo Institute showed Tuesday.

The business sentiment index fell to 102.1 from 103.3 a month ago. This was the lowest reading since March 2017, when the reading was 101.3. The score was forecast to drop moderately to 102.8.

The indicator for the current business situation as well as expectations deteriorated in April. The German economy is slowing down, Ifo President Clemens Fuest said.

The current situation index came in at a 10-month low of 105.7, down from 106.6 in March. The expected score was 106.5.

Likewise, the expectations index fell to 98.7 in April from 100 in the previous month. The reading was seen at 99.5. The score was the lowest since April 2016.

The business climate weakened across all sectors except construction, where it hit a record high. In manufacturing, business climate deteriorated for the third straight month.

In the service sector, business sentiment weakened due to far less optimistic business expectations. The business climate indicator fell in wholesale and retail trade.

April's disappointing Ifo survey added to signs that the German economy is slowing, but not as sharply as recent hard data imply, Jennifer McKeown, an economist at Capital Economics, said.

This is further cause for caution ahead of the European Central Bank's meeting this Thursday. The economist doubt that the bank will alter its dovish forward guidance, for now.

Carsten Brzeski, an economist at ING-DiBa said, even though last year's strong positive momentum has ebbed away somewhat, the German economy should not be on the eve of a structural downswing, neither is the Eurozone economy.

While some additional short-term disappointments cannot be excluded, the summer months should make up for them, Brzeski added.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback