Germany’s IFO Business Climate Index improves again, arriving at 88.8 vs. 87.2 estimates

Sagar Dua FXStreet

The German IFO Institute Business Climate Index improves again. The sentiment data arrives higher at 88.8 in August from 86.7 in July, revised higher from 86.6. The data also beats estimates of 87.2.

The IFO Current Assessment Index also comes in higher at 88.5, beating 87.0 estimates and the prior release of 86.5.

Expectations Index improves significantly to 89.1 from 86.8 in July, revised higher from 86.7. The data was already expected to arrive higher at 87.5.

Market reaction

No major reaction is seen in the Euro (EUR) following the German IFO data release. At press time, EUR/USD trades marginally lower to near 1.1660.

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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