The data beat expectations across the board as business morale improves for the month of February despite concerns surrounding the coronavirus outbreak. Ifo notes that the domestic economy does not seem to be affected by the virus situation. But, Ifo economist, Klaus Wohlrabe, thinks that the effect of the virus will be felt in the economy in the coming months.

• Development of coronavirus epidemic not yet fully reflected in our survey
• 1% less economic growth in China would shave just 0.1% off German growth
• If virus becomes a pandemic, would be particularly hit due to reliance on exports
• Industrial sector is reporting significant improvement in orders compared to 2019
• New orders have come in and domestic demand is picking up