German IFO Business Climate Index falls to 86.6 in August vs. 86.5 expected

• German IFO Business Climate Index beats estimates 86.6 with in August.
• The IFO Current Economic Assessment Index eased to 86.5 in the reported month.

The headline German IFO Business Climate Index arrived at 86.6 in August, easing from the July figure of 87.0. The market consensus was 86.5.

Meanwhile, the Current Economic Assessment Index declined to 86.5 in the same period from 87.1 in July, matching the expected 86.5 print.

The IFO Expectations Index – indicating firms’ projections for the next six months, dropped to 86.8 in August vs. 87.0 in July and 86.5 expected.

Market reaction to the German IFO Survey

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

About German IFO

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