The headline German Ifo business climate index came in at 102.8 in October, weaker than last month’s 103.7 and missed the consensus estimates pointing to a downtick to 103.0. Meanwhile, the current economic assessment also missed estimates, arriving at 105.9 points in the reported month as compared to last month’s 106.6 and 106.0 anticipated.
The Ifo Expectations Index – indicating firms’ projections for the next six months disappointed markets expectations, arriving at 99.8 for October versus expectations of 100.3 and 100.9 recorded in September.
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.
The positive economic growth anticipates bullish movements for the EUR, while a low reading is seen as negative (or bearish).
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