KOF Uncertainty Indicators

Business decisions are always made under uncertainty. Even if many entrepreneurs have a rough idea of how many products they can sell in the future, the ultimate assurance missing yet. The degree of uncertainty about the future development is not constant but may vary considerably over time. Scientific studies show that companies are more cautious because of rising insecurity. The lower activity in the corporate sector is manifested in the total economic aggregate. Companies seem to invest less in times of high uncertainty and to make personnel decisions more restrained.

The indicators approximate uncertainty in different ways.