German IFO Business Climate Index plunges to 88.6 in July vs. 90.5 expected
|- German IFO Business Climate Index came in at 88.6 in July.
- IFO Current Economic Assessment for Germany dropped to 97.7 this month.
- July German IFO Expectations Index arrived at 80.3, missing estimates.
The headline German IFO Business Climate Index plunged to 88.6 in July versus last month's 92.2 and the consensus estimates of 90.5.
Meanwhile, the Current Economic Assessment dropped to 97.7 points in the reported month as compared to June's 99.4 and 98.2 anticipated.
The IFO Expectations Index – indicating firms’ projections for the next six months, fell sharply to 80.3 in July from the previous month’s 85.5 reading and the market forecast of 83.0.
Market reaction
EUR/USD remains unfazed by the downbeat German IFO survey. At the time of writing, the pair is trading at 1.0194, down 0.14% on the day.
About German IFO
The headline IFO business climate index was rebased and recalibrated in April after the IFO research Institute changed series from the base year of 2000 to the base year of 2005 as of May 2011 and then changed series to include services as of April 2018. The survey now includes 9,000 monthly survey responses from firms in the manufacturing, service sector, trade and construction.
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