The Ifo Business Climate Index is published monthly by the Ifo Institute for Economic Research, a Munich based think tank, and has been released since 1972 as an early indicator of economic activity in Germany. It is compiled from a monthly survey of around nine thousand companies across the construction, manufacturing, wholesale and retail industries, who are asked to assess their current business situation and their expectations for the coming months. The index is closely watched by investors, commentators and policymakers as a leading gauge of German business sentiment and broader economic trends.
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