Ifo Business Climate Survey

AAA

DEFINITION of 'Ifo Business Climate Survey'

A key monthly survey that measures the business climate in Germany. It is widely followed as an early indicator of the state of the German economy. The Ifo Business Climate Survey is based on approximately 7,000 monthly survey responses from firms in manufacturing, construction, wholesale and retail. As the largest economy in the European Union, Germany's business climate has implications for the rest of the European Union.

INVESTOPEDIA EXPLAINS 'Ifo Business Climate Survey'

Firms included in the Ifo business climate survey are asked to submit their assessments of current business conditions and expectations for the next six months. The balance value of the current business situation is the difference in the percentages of the "good" and "poor" responses, while the balance value of the expectations is the difference in the percentage of the responses marked "more favorable" and "more unfavorable." The business climate is a transformed mean of the balances of the current business situation and expectations.

RELATED TERMS
  1. Consumer Confidence Index - CCI

    A survey by the Conference Board that measures how optimistic ...
  2. Michigan Consumer Sentiment Index ...

    A survey of consumer confidence conducted by the University of ...
  3. Sentiment Indicator

    A graphical or numerical indicator designed to show how a group ...
  4. Business Cycle Indicators - BCI

    Composite of leading, lagging and coincident indexes created ...
  5. Tankan Survey

    An economic survey of Japanese business issued by the central ...
  6. Lion economies

    A nickname given to Africa's growing economies.
Related Articles
  1. Forex Education

    The German ILO: Why It Matters To Traders

    Germany sets the standard and tone for business in Europe, which makes its economic releases a source of great interest to traders.
  2. Investing

    What is the full phrase for 'GmbH', and what do the words in this acronym mean in English?

    In Germany, there are two types of companies: publicly traded and privately held. The acronym 'GmbH', which is written after the name of the company, designates a company as private in Germany. ...
  3. Investing Basics

    Economic Indicators for Germany

    Here is a list of the top macro-economic indicator data sources for Germany.
  4. Investing Basics

    France's Economy: Wobbly But Still Important

    Which are the top macro-economic data sources for France? Here is the list to track economic indicators of France.
  5. Investing Basics

    The Top Indicators for India's Economy

    Here are some of the top sources to get economic indicators and associated datasets for India, the breakout BRIC star.
  6. Economics

    Profiting From China's Breakout: The Right Funds

    China's prospects for growth, and for rewarding investments, can't be debated. Here are some worthwhile funds to invest in, and the smart way of doing it.
  7. What's a Multinational Corporation?
    Investing

    What's a Multinational Corporation?

    A multinational corporation is just that – a corporation that operates in multiple nations, with a home office that coordinates global management. Being a multinational corporation is a complicated ...
  8. If retiring in Europe has always been your fantasy, you can make it a reality. Four countries that top the good-for-expats list.
    Retirement

    Retiring In Europe? Check Out These Countries

    If retiring in Europe has always been your fantasy, you can make it a reality. Four countries that top the good-for-expats list.
  9. Economics

    Why is the Breadth Indicator useful for tracking the overall economy?

    See how analysts might use technical breadth indicators to judge the health of the economy as a whole, and learn why one tool is probably not enough.
  10. What does Scarcity Mean?
    Economics

    Scarcity

    Scarcity is the basic economic problem that arises because people have unlimited wants, but resources are limited. Because of scarcity, various economic decisions must be made to allocate resources ...

You May Also Like

Hot Definitions
  1. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  3. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  4. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  5. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  6. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
Trading Center