The mood in the German economy has deteriorated to the beginning of the year. The investor makes the cold, the Dax lays unmoved. Thus, the Ifo is out in January, even worse than I thought.
It is the fifth decrease in a row: The Barometer for the business climate decreased in January to 99.1 points from previously 101,0 counters, such as the Munich-based Ifo Institute said today its monthly survey of around 9,000 managers.
The determined value is the lowest since February of 2016. Economists had only expected a decline to 100.6. “The German economy is in a downturn,” said Ifo President Clemens Fuest. The managers evaluated their business situation as poor, as well as the prospects for the next six months.
forecasts lowered
The expectations of the business situation in the coming six months, decreased in all examined industries: in manufacturing, in the service sector, in trade and in the construction industry, the “experienced for the first time in a long time a significant damper”, such as the Ifo announced.
The Ifo Institute has recently lowered its economic forecasts for Germany. The gross domestic product is expected to rise in 2019 by only 1.1 percent. The problems of the Auto industry with the new emission standard of measurement as well as uncertainties such as Brexit and the US trade policy press currently, the mood.
recession unlikely
According to Ralf Umlauf, economist at Helaba, shows the latest survey, the economic downturn continues, “even if a recession in Germany, in our view, is unlikely. The dampening special effects in the second half of the year, 2018 should lose weight. Political uncertainties weigh on still and stand in a massive brightening of the mood”.
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<p class="text small" investors show the deterioration in sentiment in the economy unaffected. The Index recorded scores above the threshold of 11,200 points. The Euro also continued in the morning, its recovery and climbed back above 1.13 against the Dollar.
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