News from the editorial


ifo traffic light continues to show "red".

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ifo index june2018 Dear Readers,

The ifo business climate in June does not give the all-clear. The most important component for us - expectations for the future in industry - could not improve after six consecutive declines.

Although the ifo economic clock is still in the boom quadrant, it is moving in the direction of a downturn. And the ifo traffic light continues to be set to "red. It shows the monthly probability of an expansionary phase of the economy. Green traffic light values signal probabilities of more than two thirds and thus indicate expansion. Red traffic light values stand for expansion probabilities of less than one third - so they make a contraction more likely.

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ifo Indicator of Economic Sentiment continues to decline.

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ifo index jul18 Dear Readers,

The ifo business climate in July did not bring a turnaround. The most important component for us - the industry's expectations for the future - has now declined eight times in a row.

The fact that the ifo economic clock is still in the boom quadrant is due to the historically high values at the beginning of the year. Step by step, however, this indicator is now moving in the direction of the downturn. For the fifth month in a row, the ifo traffic light has also been set to "red". Red traffic light values make a contraction of the economy more likely than an expansion.

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Comeback of economic optimism.

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ifo index august2018 Dear Readers,

The ifo business climate in July brought a massive improvement. The most important component for us - expectations for the future in industry - has risen significantly again after eight consecutive declines. Expectations have now even returned to the level of January 2018.

With this brilliant rise, the danger of the German economy soon slipping into the downturn quadrant of the ifo economic clock seems to be averted. And the ifo traffic light is now back on "green" as well. Green traffic light values signal probabilities of greater than two thirds for an expansive phase;

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