German IFO Survey Shows Surprise Dip In Business Expectations, Business Climate Index In March; Current Assessment Improves

Expectations for the upcoming six months among businesses in Germany took a hit in March, while an assessment of the current situation in the country’s economy improved, according to a survey by Munich-based CESifo.

The Ifo Business Climate Index, which measures how German companies foresee the business climate for the next six months, fell to 110.7 from 111.3 in the previous reading. The index for business expectations, a sub-index of the business climate index, dipped to 106.4, down from 108.3 in the previous reading. A Wall Street Journal consensus estimate had pegged the numbers to be at 111.0 and 107.7 respectively.

However, the index that measures assessment by businesses of the current situation in the country, showed an improvement to 115.2 from a reading of 114.4 last month. A Wall Street Journal consensus estimate had pegged the number to be at 114.6.