
German Business Climate Improves Slightly, But Ifo Remains Pessimistic About Manufacturing
The manufacturing ans industrial sectors have been in deep recession in Germany for many months. The business has suffered in general and the business climate/sentiment has deteriorated as well. The Ifo business climate report was released a while ago, showing a little improvement, but nothing extraordinary.
Ifo Business Climate Report
- Ifo business climate 95.0 points vs 94.9 expected
- Prior 94.6 points; revised to 94.7
- Expectations 92.1 points vs 92.5 expected
- Prior 91.5 points; revised to 91.6
- Current assessment 97.9 points vs 97.9 expected
- Prior 97.8
Ifo Comments
- German manufacturing is still stuck in recession
- Notes that the signs are that business will be very good this Christmas
- Expects Q4 GDP growth to come in at +0.2%
So, a small improvement in the headline ifo business sentiment, but the expectations declined, which means that the sentiment might weaken again next month. Positive comments on Christmas expectations and Q2 GDP is seen growing at 0.2%. But manufacturing remains in deep recession and that’s the most important piece of the puzzle. So, the Euro should remain bearish as long as manufacturing is in recession.