Ifo – a cold shower
The unexpected decline in the Ifo business climate (84.7 after 85.6) is a cold shower. The trend in the Ifo business climate is still pointing downwards.
12/17/2024
The Ifo business climate index fell significantly in December (from a revised 85.6 to 84.7). The economists surveyed in advance had only expected a minimal decline. While the assessment of the current business situation improved (85.1 after 84.3), expectations for the next six months literally collapsed (84.4 after 87.0). With the exception of the construction industry, the business climate fell in all major sectors.
Ifo still on a downward trend
After today's disappointment, the Ifo business climate index continues to trend downwards, although it has already fallen to a very low level. The composite purchasing managers' index and the order intake have at best stabilized at low levels. All in all, the leading indicators suggest that GDP will at best stagnate in the winter half-year.
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