German IFO Business Climate Index climbs to 86.9 in October vs. 85.9 expected

• German IFO Business Climate Index rose to 86.9 in October.
• IFO Current Economic Assessment improved to 89.2 in the reported month.

The headline German IFO Business Climate Index arrived at 86.9 in October, up from the previous month’s reading of 85.8 while beating the market expectations of 85.9.

Meanwhile, the Current Economic Assessment Index rose to 89.2 points in the reported month, compared with September’s 88.7 and 88.5 estimated.

The IFO Expectations Index – indicating firms’ projections for the next six months, climbed to 84.7 in October from 83.1 in September. The market consensus was 83.3.

IFO president Clemens Fuest said: “The German economy sees a silver lining on the horizon.”

Market reaction to the German IFO Survey

EUR/USD is re-attempting bids on the upbeat German IFO survey. At the time of writing, the pair is trading at 1.0590, up 0.03% on the day.

About German IFO

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