Germany: IFO Business Climate Index declines to 88.4 in June vs. 90.7 expected

• German IFO Business Climate Index continued to decline in June.
• EUR/USD clings to small daily gains near 1.0900 early Monday.

The headline German IFO Business Climate Index fell to 88.4 in June from 91.5 in May (revised from 91.7). This reading came in weaker than the market expectation of 90.7.

Meanwhile, the Current Economic Assessment Index edged lower to 93.7 from 94.8 but arrived higher than the market expectation of 93.5. Finally, the Expectations Index – indicating firms’ projections for the next six months, declined to 83.6 from 88.3.

Market reaction

EUR/USD showed no immediate reaction to this report and was last seen posting small daily gains near 1.0900.

About German IFO

The headline IFO business climate index was rebased and recalibrated in April after the IFO Research Institute changed the series from the base year of 2000 to the base year of 2005 as of May 2011 and then changed the 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.