MNI 5 THINGS: Ifo Biz Climate Cools, Second Straight Decline

--5 Things We Learned From the Ifo German Business Climate

By Christian Vits

     FRANKFURT (MNI) - The following are the key points from the March data on

the German business climate:

     - Recent strong sentiment among German businesses weakened again in March,

although remaining at elevated levels. The Ifo Business Climate Index fell to

114.7 points in March from 115.4 points in February, the second consecutive

decline.

     - Companies were less satisfied with their current business situation,

which nevertheless remained at a high level, the Ifo Institute said. They were

also less optimistic about the months ahead. "The threat of protectionism is

dampening the mood in the German economy," Ifo President Clemens Fuest said.

     - In manufacturing, the business climate deteriorated, but remained at a

high level. This was due to markedly less optimistic expectations. Assessments

of the current business situation, by contrast, were marginally better. Demand

in manufacturing remains strong. Firms intend to ramp up production, but on a

smaller scale than in previous months.

     - In wholesaling, the business climate was unchanged on last month's level.

While wholesalers' assessments of their current business situation improved,

they were less optimistic about their six-month business outlook.

     - In retailing, the climate deteriorated markedly. The business climate

index fell to its lowest level since February 2017 and retailers' expectations

turned lower, albeit modestly.

--MNI Frankfurt Bureau; +49 69 97782671; email: christian.vits@marketnews.com

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