IFO index: German mind-blowing recovery continues

In July, the Ifo index broke another record maximum, demonstrating that the strong revival of German economy will move on.

The Ifo index, Germany’s most prominent leading indicator, added for the sixth month in a row, hitting another all-time maximum in July. It’s currently showing 116.0, soaring from June’s outcome of 115.1. Both the hopes and current assessment component demonstrated a drastic improvement.

The given acceleration in the German economy is not only the outcome of sturdy private as well as public consumption, but it’s also provoked by a sudden industrial recovery and stronger investment. Nearly unnoticed, the industry has shifted from being sluggish to surprisingly buoyant.

It feels like investment might pick up over the course of 2017. In fact, the combination of firm orders and low inventories appears to be as positive as in mid-2006 and also late-2010. Meanwhile, capacity utilization has leapt to the highest value since late 2008.