?Economists
are talking today about the IFO measurement that Germany is about to
publish. Again it is one of those fad words that we are familiar with,
we think we know but in reality its mere definition evades us.
?IFO Business Climate Index stands for the ifo
Konjunkturperspektiven (in German) and it one of the most respective
leading indication for the German economy followed closely by the
markets. It is actually a monthly survey conducted among German
companies that reveal their assessment (positive or negative) on the
current business situation. It is published monthly by the ifo Institut
Center of Economic Studies in Munchen since 1972.
The
index measures 7,000 survey replies that express their opinions (good,
poor, satisfactory) about the current state of the economy along with
what they expect six months (more favorable, unchanged, less favorable)
ahead will be.
As an
indicator or economic activity it is closely monitored as a supplement
data from the official statistics, as being easily accessible and more
frequently measurement than compared for example with the GDP data.
Disclaimer: This blog content is written merely with educational purposes and does not contain any financial or trading advice.