Germany’s IFO Business Climate Index arrives higher at 89.9, beats 89.0 estimates

Sagar Dua FXStreet

The German IFO Institute Business Climate Index improves at a faster-than-expected pace in September. The sentiment data arrives higher at 89.9 from estimates of 89.0 and 88.8 in August.

The IFO Current Assessment Index also comes in higher at 89.5 vs. 89.0 expectations. and the previous reading of 88.5.

Expectations Index, an early indicator of current conditions and business expectations for the next six months, iaccelerates to 90.4 against 89.3 consensus and the prior release of 89.0, revised lower from 89.1.

Market reaction

The Euro (EUR) appears to have responsed positively to better-than-projected German IFO Institute sentiment data. At press time, EUR/USD is 0.12% close to 1.1400 after recovering early losses.

Economic Indicator

IFO – Business Climate

This German business sentiment index released by the CESifo Group is closely watched as an early indicator of current conditions and business expectations in Germany. The Institute surveys more than 7,000 enterprises on their assessment of the business situation and their short-term planning. The positive economic growth anticipates bullish movements for the EUR, while a low reading is seen as negative (or bearish).

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