Germany IFO business climate likely to record a modest decline in December

There are mixed expectations regarding Germany IFO business climate. While on one hand, some market participants expect it to rise modestly by 0.2%, on the other hand some market participants expect a modest decline of 0.1% in December.

However, in any case there would be little change in December' IFO business climate. The indicator remains at a level that is historically high, which reflects a great coverage of domestic and services economy.

"In December, we expect the Ifo business climate index to decline to 108.9, from 109.0 in November. Over the coming months, we expect the subdued news flow to continue from industry, trade and investment, with resilient consumption and some fiscal easing largely offsetting these headwinds", says Societe Generale in a research note.