German IFO Business Climate drops to 96.5 in Nov vs. 96.6 expected

• German IFO Business Climate Index came in at 96.5 in November.
• IFO Current Economic Assessment fell to 99.0 this month.
• November German IFO Expectations Index arrived at 94.2, a miss.

The headline German IFO Business Climate Index worsened to 96.5 in November versus last month's 97.7 and the consensus estimates of 96.6.

Meanwhile, the Current Economic Assessment arrived at 99.0 points in the reported month as compared to last month's 100.1 and 99.0 anticipated.

The IFO Expectations Index – indicating firms’ projections for the next six months, fell to 94.2 in November from the previous month’s 95.4 reading and worse than the market expectations of 95.0.

Market reaction

EUR/USD holds the lower ground on the downbeat German IFO survey. The spot hit fresh 2021 lows of 1.1220 on the data release.

At the time of writing, the pair is down 0.19% on the day, trading at 1.1225.

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.