Germany: Bouncing ifo expectations is easing immediate Brexit-fears – Deutsche Bank
|Research Team at Deutsche Bank, suggests that the fourth largest rise in Germany’s ifo expectations since re-unification particularly in the manufacturing sector helped push the ifo index to the highest level since mid-2014.
Key Quotes
“While this brings the manufacturing ifo roughly in line with the manufacturing PMI, the discrepancy between the two surveys with respect to the services sector has gotten wider with the services and retail ifo improving, too. Moreover, at their September level ifo expectations points to a strong GDP growth pick-up in Q4, while the weakening PMI points to slowing growth.
Overall, this data release brought little clarity. On the plus side, it somewhat eases downside risks to our Q4 GDP expectations. On the negative side, we fear that part of the ifo surge is a “relief rally” after initial fears of an immediate large negative Brexit-impact have eased.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.