German IFO Business Climate Index improves to 86.3 in November vs. 85.0 expected

• German IFO Business Climate Index came in at 86.3  in November.
• IFO Current Economic Assessment for Germany rose to 93.1 this month.
• November German IFO Expectations Index arrived at 80.0, beating estimates.

The headline German IFO Business Climate Index climbed to 86.3 in November versus the previous reading of 84.5 and the market consensus of 85.0.

Meanwhile, the Current Economic Assessment improved to 93.1 points in the reported month when compared to October's 84.2 and 93.8 expected.

The IFO Expectations Index – indicating firms’ projections for the next six months, rose to 80.0  in November from the last month’s 75.9 and against the estimates of 77.0.

Market reaction

EUR/USD shrugs off the upbeat German IFO survey. At the time of writing, the pair is trading at 1.0412, up 0.19% on the day.

About German IFO

The headline IFO business climate index was rebased and recalibrated in April after the IFO Research Institute changed the series from the base year of 2000 to the base year of 2005 as of May 2011 and then changed the 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.