2017 general election has only limited influence on the mood of companies

Government should make an effort to improve framework conditions for businesses

German companies have remained largely untouched by any sentiments or trends which have arisen during election campaigns over the past 23 years. This was also the case for the most recent general election in Germany, as a look at the ifo business climate index reveals. The commercial landscape tends to only react if new economic or financial policies will ultimately have a direct effect on companies. It remains to be seen whether or not this will still be the case in view of the recent election result. One of the reasons why companies tend to react so rationally to election campaigns and the eventual outcomes of parliamentary elections is that most of the conceivable coalitions no longer seem so bad for the vast majority of companies. This also applies to the Jamaica coalition, so named as the traditional colours of the constituent parties (CDU/CSU, FDP and Greens) represent the colours of the Jamaican flag.

For the companies it would be important that the future government makes an increased effort to improve the framework conditions. However, corporate decisions should continue to be taken within the companies themselves.

Although the ifo business climate index fell slightly this month, it remains at a very high level in a long-term comparison. At currently 115.2 points, this is the third-best result ever recorded. It is only in both of the previous two months that the mood of companies has been even better.

The construction industry is continuing its surge against the prevailing trend. Improvements in both the industry’s assessment of its current situation as well as in business expectations ensured that another record high was hit in September, as had been the case in both of the previous two months as well.

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