Germany’s Ifo Index Plunges to Historic Low
German business sentiment plunged to its lowest level ever recorded, in its strongest decline in history due to the coronavirus crisis, the Ifo Institute said Friday.
“The coronavirus crisis is striking the German economy with full fury,” the Ifo said.
The Ifo business-climate index came in at 74.3 points in April from a downwardly revised 85.9 in March. Economists surveyed by The Wall Street Journal had forecast it at 80.0 points.
This decline is primarily due to the massive deterioration in the current situation, a component that fell to 79.5 points in April from 92.9 points in March.
“Companies have never been so pessimistic about the coming months,” said Clemens Fuest, president of the Ifo institute.
Expectations went down to 69.4 points from 79.5 points in March, the institute said. Economists polled by The Wall Street Journal had forecast figures of 80.8 for the current situation and 77.0 points for expectations.
The Ifo index is based on a poll of about 9,000 companies in manufacturing, services, trade and construction.
Source: Dow Jones