DMV-ifo Marketing Barometer October 2018

Business climate in the marketing sector is weakening again

Following the monthly improvements in the mood in the marketing sector since the middle of the year, October saw a slightly more pessimistic perception of the market situation by the marketing companies surveyed for the first time again. A significantly worse perception of the business situation (-1.3 points) and a slight deterioration in business expectations (-0.2 points) together resulted in a moderate drop (-0.7 points) in the business climate index to 98.5 points.

This development also roughly reflects that of the German economy as a whole, whose ifo Business Climate Index lost 0.9 points in October. One of the possible reasons for the more pessimistic perception of the business situation and business expectations in the marketing sector is probably the current order backlog of the companies surveyed. For the second time in a row, they are much more dissatisfied with the assessment of their order backlog. Overall, the balance value of the assessment of the order backlog of -2.8 points is thus even noticeably negative again. Also with regard to the development of sales prices in the coming months, the respondents were less confident in October. The balance of price expectations fell by 1.6 points. In line with the more negative assessment of the order backlog and the falling price expectations, the indicator of sales expectations also lost a clear 7.0 points in October. When classifying this development, however, it should be noted that the development of the indicator in recent months was generally characterized by high volatility. Only the indicator in the recruitment plans lost even more ground in October. With a minus of 10.1 points, its balance lost as much as it did more than three years ago. As a result of this heavy loss, the indicator, with a new balance of 9.9 points, is now at its lowest level since July 2015.

The whole evaluation you find here. (only available in German)

Link to previous evaluations.