| Consensus | Consensus Range | Previous | |
| Business Climate | 84.1 | 82.0 to 84.5 | 84.4 |
| Current Conditions | 85.0 | 84.0 to 85.1 | 85.4 |
| Business Expectations | 83.2 | 80.0 to 84.0 | 83.3 |
Market Consensus Before Announcement
No recovery expected with the business climate index expected weaker at 84.1 in May versus an already bleak 84.4 in April as the energy shock weighs on business sentiment.
Definition
Ifo is an acronym from Information and Forschung (research). Published by Munich's Ifo Institute, the Business Climate Index is closely watched as an early indicator of morale in German industry. In addition to overall gauge of sentiment, data are provided on its two components, current conditions and expectations. As a forward looking indicator, the latter is normally seen as the more important. Ifo surveys more than 9,000 enterprises in manufacturing, services, construction, wholesaling and retailing and a separate estimate of sector confidence is supplied for each.
Description
The headline index has a good correlation with developments in overall GDP and so has a major influence in shaping views on how the national economy is performing. The main focus is the expectations index.