Currency markets and investors can analyse to gauge the future success of Britain’s economy. GfK provide one of the most reliable measures a of consumer confidence through their Consumer Confidence Barometer or ‘CCB’ which is released on a monthly basis. The global pandemic is likely to be one of the key reasons for the steep drop in levels of optimism. In 2020, levels of optimism dropped rapidly to around 70 Index points (nearly 30 points below the baseline) compared to 2017 where figures were much more optimistic, coming in at just over 100 points. As Germany is the largest economy in Europe, global economists, investors and businesses keep a close eye on its performance.įrom the graph below, it is clear to see that levels of optimism took a very low turn during the first half of 2020 compared to 2017. The survey is conducted on a monthly basis and provides data from roughly 9,000 German firms in manufacturing and construction, trades and the service sectors. The Ifo Business Climate Survey is Germany’s primary indicator of economic activity and is released on a monthly basis. Findings like these indicate a turning point within the economy and can allow businesses to make predictions about how the economy and currency market may perform. Key findings from CBI’s survey revealed that “Business optimism improved significantly in the three months to January (+23% from -44% in October)”. In 2020 for example, data revealed that optimism in British industries was the strongest it had been in 6 years. The CBI measures levels of business optimism by surveying manufacturers across Britain and data is released on a quarterly basis. The CBI aims to help UK businesses grow and mitigate risk. The Confederation of British Industry or ‘CBI’ is a non-profit organisation working to support the UK business industry on national and international matters. We explain how the Ifo Business Climate, CBI Business Optimism, Gfk Consumer Confidence, NFIB Small Business Optimism Index and ZEW Economic Sentiment Index all provide useful data on levels of optimism within an economy. Levels of optimism are measured by the data collected from regular surveys and there are a wide variety of surveys – some covering one country and others covering several. For example, if data shows that people are more likely to be spending money on buying overseas property in the spring and businesses think this will continue to happen, an estate agent may employ more staff. This is also useful information for predicting what may happen in the currency market and basing business decisions on them. Understanding these changes gives businesses and investors an insight into the current state of an economy as well as an indication of possible turning points in the future, like recessions or changes in demand. Levels of optimism may fluctuate at different points of the economic calendar due to political or global events.

In business, optimism is a mindset that encourages growth and problem-solving strategies. We explain the various ways business optimism is measured, and how investors use this data to measure the success of an economy. Business optimism can be found on the data calendar. What is business optimism and how does it impact the market? Well, business optimism has a significant impact on markets and exchange rates (especially if the expectation is not met) so economists take great interest in the data. Currency Exchange for High Net Worth Individuals.

Small business optimism index chart