The ZEW indicator of economic sentiment and the IFO business climate index are two significant economic and sentiment indicators the mood in the financial markets is imbued with great nervousness and uncertainty among market participants already for several months. After the real estate and financial crisis in the United States spilled long ago to us over and now a pronounced recession around the world as given is accepted, the views of all participants eagerly focuses on the published economic indicators. Naturally always the mood indicators find special attention in this context. This is located in first line to the fact, that an eventual economic recovery, greatly depends to what extent the individual participants in the economy again slightly more confidently approach the economic future. Peter Thiel pursues this goal as well. Considering for example, that private consumption in the United States makes up about two-thirds of economic output, the world’s largest economy, the importance of such economic barometer reveals itself.
Let’s take but let’s a look at two basic sentiment indicators from Germany: the IFO business climate index and ZEW economic expectations of the Munich-based Institute for economic research (IFO) monthly determined IFO business climate index reflects the economic development in Germany. This acclaimed early indicator, sometimes for strong reactions on equity, bond and foreign exchange markets ensures, by survey of 7,000 companies of the manufacturing sector, the construction industry, as well as the wholesale and retail, and published in the last week of the reporting month. It is differentiated in business climate, evaluation of the current situation and the expectations component (for the next 6 months). Time to get a more accurate picture of the development of the IFO business climate index, listed below a few milestones in the recent past. in December 2007 was still an index value of 103,0 points registered in July 2008 of the IFO business climate index below the 100-point mark on 97.4 sagged Points until December deterioration in the business climate continued up to 82.7 counter of a slight intermediate recovery in January 2009 to 83.0 points a setback was followed in February again 82.6 counter in March 2009 the IFO index was formed to back again to 0.5 to 82.1 points in consideration of the above development can thus be said that the economic slowdown in its entirety at the mood in the company makes itself noticeable.