The German business climate indicator published by the IFO Institute stood at 88.5 points in Augusttwo tenths below July’s 88.7 (figure revised upwards from 88.6), but improving the market expectation, which expected a drop to 86.8.
Despite improving forecasts, the August figure is the lowest seen by the indicator in 26 months, specifically since June 2020.
The current valuation IFO has stood at 97.5 compared to 97.7 the previous month, also exceeding forecasts, which estimated a drop to 96. The indicator recorded its weakest figure in four months in August.
Finally, the Expectations IFO has only fallen one tenth, from 80.4 in July to 80.3 in August, its lowest result in 28 months, since April 2020, in the midst of the first wave of the coronavirus pandemic. Despite this, the indicator improves the market consensus, which expected a decline to 78.6 points.
Source: Fx Street
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