Germany’s Ifo Business Climate Index Plummets to 90.8 Points in March

Source: Ifo Institute

The Ifo business climate index was posted at 90.8 points in March, scaling down from 98.5 points in February, as the war in Ukraine dampened sentiment. DAX is up +0.43%, EURUSD is up +0.08%.

• The expectations index dropped by a record 13.3 points, exceeding the decline of 11.8 points posted at the onset of the coronavirus in March 2020.
• The confidence fell across all sectors, with the manufacturing firms’ current and expectations index falling into the pessimism zone. 
• The service sector confidence deteriorated significantly, with firms accessing the situation in the coming months unfavorably. The current situation remained stable.
• In the retail sector, the expectations indicator fell by a record, while the assessments of the current situation remained almost the same.
• The business climate in construction fell significantly, driven by a rise in pessimistic expectations. The current situation index also fell.