The Ifo Business Climate Index for Germany rose 0.9 points from a month earlier to 99.6 in March 2019, easily beating market expectations of 98.5. It was the first increase in German business morale in seven months. The gauge of current conditions increased to 103.8 from 103.6 in February and the business expectations sub-index rose to 95.6 from 94. Sentiment improved among service providers (26 vs 21.3), wholesalers & retailers (8.2 vs 4.9) and constructors (20.3 vs 18), while confidence among manufacturers continued to deteriorate (6.6 vs 9.1). Business Confidence in Germany averaged 98.13 Index Points from 1991 until 2019, reaching an all time high of 109.80 Index Points in January of 1991 and a record low of 79.70 Index Points in March of 2009.
Business Confidence in Germany is expected to be 97.60 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Business Confidence in Germany to stand at 102.60 in 12 months time. In the long-term, the Germany Ifo Business Climate Index is projected to trend around 102.00 Index Points in 2020, according to our econometric models.