Ifo Business Climate Index rises for fourth consecutive month in February

The Ifo Business Climate Index for industry and trade in Germany rose for the fourth consecutive month from 106.7 points in January to 106.8 points in February, the Ifo institute reported on Monday.

In spite of the fourth consecutive month rise, the slight increase by only 0.1 point is still unexpected for some economic experts, who were expecting a stronger increase to 107.7 points.

"Satisfaction with the current business situation decreased slightly, but companies expressed greater confidence in future business developments," Ifo president Hans-Werner Sinn said.

The indexes of business expectations in manufacturing increased a little bit. Although manufacturers' assessments of the current business situation were slightly less favorable than last month, the six-month business outlook improved to its highest level since August 2014, according to the Munich-based think tank.

Meanwhile, the business climate index in retailing edged upwards and the outlook continued to improve, while the indexes in wholesaling and construction deteriorated marginally.

"The German economy is proving robust in the face of geopolitical uncertainty," Sinn noted.

The Ifo Business Climate Index, considered as the most important barometer for the German economy, is based on about 7,000 monthly survey responses from firms in manufacturing, construction, wholesaling and retailing. Endit