German IFO business climate index rises to 85.5 in February, as expected

• The IFO German business climate index rose as expected in February.
• The current IFO economic assessment stabilized in the reported month.

He German IFO business climate index stood at 85.5 points in Februaryimproving the January figure of 85.2 and meeting the market forecast of 85.5.

For its part, the current situation evaluation index remained unchanged at 86.9 in the reported month, above expectations of 86.7.

He IFO expectations index, which indicates companies' forecasts for the next six months, rose slightly to 84.1 in February, compared to 83.5 the previous month and below the 84.0 expected.

Market Reaction to the German IFO Survey

The EUR/USD pair has not been inspired by the optimism of the German IFO survey. At the time of writing, the pair is trading flat at 1.0821.

About the German IFO

The overall IFO business climate index was rebased and recalibrated in April after the IFO Research Institute changed the series from base year 2000 to base year 2005 starting in May 2011 and then changed the series to include services to starting April 2018. The survey now includes 9,000 monthly responses from companies in the manufacturing, services, trade and construction sectors.