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German Business Climate Index Makes the Strongest Increase Ever

Posted Wednesday, June 24, 2020 by
Skerdian Meta • 1 min read

The Ifo business climate indicator for Germany was released a while ago. It shows the a composite index based on surveyed manufacturers, builders, wholesalers, services, and retailers, so it covers almost all the economic scene in Germany and it showed a nice jump this month, which is a positive thing. Although, it is coming from a whole where it fell in the previous months, like most economic indicators.

Ifo Germany June Ifo Business Climate Index – 24 June 2020

  • June Ifo business climate index 86.2 pints vs 85.0 expected
  • May Ifo business climate index  79.5 points
  • Expectations 91.4 points vs 87.0 expected
  • May expectations was 80.1 points
  • Current assessment 81.3 points vs 84.0 expected
  • May current assessment was 78.9 points
Little surprise as business sentiment improved in the month of June but is still keeping at rather subdued levels compared to previous years. The sharper-than-expected bounce in expectations is a positive takeaway though and Ifo notes that the rebound in June is the strongest increase recorded in the survey’s history.
For now, this just reaffirms better sentiment as the economy reopens regionally but we’ll have to see how all of this plays out in the coming months and if the recovery is as optimistic as what recent investor and business sentiment data suggests. But, it will all be down to the coronavirus and I think that this nonsense will last until the US elections, since that’s the main aim of the pandemic.
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