ifo Business Surveys for February 2019 at a glance: German economy remains weak

In February, the ifo Business Climate Index fell to its lowest level since December 2014. Once again, companies rated their current business situation as somewhat less favorable. Pessimism about the coming six months has also increased. These results and other indicators point to economic growth of 0.2% in the first quarter. The German economy remains weak. German companies are becoming somewhat more reluctant to look for employees. The ifo Employment Barometer fell to 102.9 points in February after measuring 103.0 points in January. By contrast, the mood among German exporters has brightened somewhat. The ifo Export Expectations for manufacturing rose in February. German industry is holding its own in a difficult global economic environment. The US government’s tariff threats are currently having no negative impact on the automotive industry’s export expectations.