Yep, Business Climate Dives in Germany This Month, as Anticipated
Skerdian Meta • 1 min read
Public institutions have closed across Europe and many countries have shut down large parts of the economy, if not all. This is going to plunge the GDP for this month and April, probably for May as well. The sentiment has also been hurt, so the business climate in Germany was expected to turn lower this month, with Volkswagen closing down factories yesterday. The Ifo report was released earlier today and it dived hard, although not as hard as it should dive next month.
- Germany March preliminary Ifo business climate index 87.7 points from 96.1 prior
- February stood at 96.1 points, revised to 96.0 today
- Expectations at 82.0 points
- February expectations stood at 93.4 points, revised to 93.2
- Current assessment at 93.8 points
- January current assessment 98.9 points; revised to 99.0
All sub-components have declined considerably. Business climate has lost more than 8 points, falling to 87.7 points, expectations have declined by 12 points, to 82 points, Current assessment has also declined, but not as much as the other two sub-components.
Looks bad and it is expected to turn worse next month, so EUR/USD continues to tumble lower. Ifo president, Clemens Fuest, said that the further course of events depends very much on how the epidemic develops, but the German economy could shrink by 6%.