German IFO Business Climate Index drops to 92.3 in June vs. 92.9 expected

• German IFO Business Climate Index came in at 92.3 in June.
• IFO Current Economic Assessment eased to 99.3 this month.
• June German IFO Expectations Index arrived at 85.8

The headline German IFO Business Climate Index dropped sharply to 92.3 in June versus last month's 93.0 and the consensus estimates of 92.9.

Meanwhile, the Current Economic Assessment eased to 99.3 points in the reported month as compared to May's 99.5 and 99.1 anticipated.

The IFO Expectations Index – indicating firms’ projections for the next six months, unexpectedly fell to 85.8 in June from the previous month’s 86.9 reading and the market forecast of 87.4.

Market reaction

EUR/USD remains little affected by the mixed German IFO survey. At the time of writing, the pair is trading at 1.0530, modestly flat on the day.

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.