German IFO business climate index falls to 86.6 in August from 86.5 expected

• German IFO business climate index beats estimates at 86.6 in August.
• The IFO current economic assessment index fell to 86.5 in the reported month.

Germany’s IFO business climate index reached 86.6 in August, down from July’s figure of 87.0. The market consensus was 86.5.

Meanwhile, the current economic assessment index fell to 86.5 in the same period from 87.1 in July, matching the expected print of 86.5.

The IFO expectations index – which shows firms’ forecasts for the next six months, fell to 86.8 in August from 87.0 in July and an expected 86.5.

Market reaction to the German IFO survey

EUR/USD fails to find any inspiration from German IFO mixed survey. At the time of writing, the pair is trading 0.08% lower on the day at 1.1180, pending US durable goods orders data.

About the German IFO

The main IFO business climate index was rebased and recalibrated in August after the IFO Research Institute changed the series from the 2000 base year to the 2005 base year in August 2011 and then changed the series to include services in August 2018. The survey now includes 9,000 monthly survey responses from firms in the manufacturing, service, trade and construction industries.