The TD Securities Analysts offer their afterthoughts on the German IFO Survey after the German business morale fell to the lowest levels since 2012 in August.
Key Quotes:
“The August German IFO survey fell more than expected, dropping to 94.3 (mkt 95.0) from a slightly upwardly revised 95.8 in July. Both the expectations and current assessment indices fell more than expected, to 91.3 (mkt 91.8) and 97.3 (mkt 98.8), respectively.
While the forward-looking indicators in the latest PMI indicated some weakness in the IFO, the survey is now languishing at its weakest level in close to 7 years, reinforcing expectations that the economy will slide into recession after a Q2 contraction in growth.
Worsening trade war headlines suggest little respite for German manufacturers. EUR was already under pressure and maintained its declines after the release.”
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