German IFO Business Climate Index unexpectedly drops to 100.8 in July, EUR/USD off the highs


  • German IFO Business Climate Index came in at 100.8 in July.
  • IFO Current Economic Assessment fell to 100.4 this month.
  • July German IFO Expectations Index arrived at 101 .2, a big miss.

The headline German IFO Business Climate Index unexpectedly fell to 100.8 in July versus last month’s 101.7 and the consensus estimates of 102.1.

Meanwhile, the Current Economic Assessment arrived at 100.4 points in the reported month as compared to last month’s 99.7 and 101.6 anticipated.

The IFO Expectations Index – indicating firms’ projections for the next six months, dropped sharply to 101.2 in July from the previous month’s 103.7 reading and better than the market expectations of 103.3.

Market reaction

EUR/USD eased further from the daily highs of 1.1801 on the downbeat German IFO survey. The spot was last seen trading at 1.1778, adding 0.08% 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.



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