The IFO Business Climate Index is a monthly survey that measures the current business conditions of German firms (manufacturing, construction, wholesale and retail industries) and their business expectations six months ahead. The index is based on a sample of about 7,000 firms which are asked to rate the current business climate as well as their expectations for the next six months on a scale from -100 to 100. A value above zero indicates positive sentiment, while a value below zero indicates negative sentiment.The IFO Business Climate Index is an important indicator of economic activity in Germany and can be used to predict future trends in the economy. The index has been generally trending downwards since 2011, reaching its lowest point in 2016. This suggests that German businesses are becoming less optimistic about the future prospects for the economy. However, there have been some signs of improvement recently, with the index rising slightly in 2017 and 2018.Overall,the IFO Business Climate Index provides valuable insights into how businesses are feeling about the current state of affairs and their outlook for the future
