Wednesday, March 27, 2013

Should This Chart Be More Concerning?

Germany is the one bright spot in the EU story right now.  However, consider this chart, which shows the IFO business confidence index:

The number has been drifting lower for the last two years, save for a spike up at the end of last year.  And the drop is for all three indicators: business expectations, business climate and assessment of the business situation.

Now, it's very important to point out that the overall readings are still very positive.  But the trend is concerning nonetheless.