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From ‘I Don’t Like Mondays’ to ‘Friday I’m in Love’ – Day-of-the-Week Effects in Business Surveys

Author

Listed:
  • Jonas Hennrich
  • Klaus Wohlrabe

Abstract

This study identifies day-of-the-week effects in business surveys using monthly data from the ifo Institute. The odds are higher that companies are more likely to exhibit more pessimistic business expectations for the upcoming months on Mondays and more optimistic expectations at the end of the week. The same holds for the assessment of the current business situation. Firms are more uncertain about their upcoming business development on Mondays and less uncertain on Saturdays. The effects are mainly driven by firms from the service sector and by companies with less than 50 employees. Although statistically significant, the effects are economically rather small.

Suggested Citation

  • Jonas Hennrich & Klaus Wohlrabe, 2023. "From ‘I Don’t Like Mondays’ to ‘Friday I’m in Love’ – Day-of-the-Week Effects in Business Surveys," CESifo Working Paper Series 10750, CESifo.
    • Handle: RePEc:ces:ceswps:_10750
    as

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    File URL: https://www.ifo.de/DocDL/cesifo1_wp10750.pdf
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    References listed on IDEAS

    as
    1. Buchheim Lukas & Krolage Carla & Link Sebastian, 2022. "Sudden stop: When did firms anticipate the potential consequences of COVID-19?," German Economic Review, De Gruyter, vol. 23(1), pages 79-119, February.
    2. Gibbons, Michael R & Hess, Patrick, 1981. "Day of the Week Effects and Asset Returns," The Journal of Business, University of Chicago Press, vol. 54(4), pages 579-596, October.
    3. Robert Lehmann, 2023. "The Forecasting Power of the ifo Business Survey," Journal of Business Cycle Research, Springer;Centre for International Research on Economic Tendency Surveys (CIRET), vol. 19(1), pages 43-94, March.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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