Germany Ifo Business Climate dropped to 97.5 in June, slightly down from 97.9 and below expectation of 97.5. Though, that’s still the lowest level since November 2014. Ifo Expectation index dropped to 94.2, down fro 95.3 and missed expectation of 04.6. Current Assessment index rose to 100.8, up from 100.6 and beat expectation of 100.3.
Ifo President Clemens Fuest noted: “Companies have grown increasingly pessimistic about the coming months. However, their assessment of the current business situation improved marginally. The German economy is heading for the doldrums.”
Looking at the details, Manufacturing index dropped again from 3.9 to 1.5. It’s been falling for over a year. Services index dropped from 21.0 to 20.0. Construction index dropped from 24.3 to 22.9. But Trade index improved from 5.4 to 7.9.
Euro remains firm against Dollar and Yen after the release. But EUR/CHF is mildly lower. For now EUR/CHF’s consolidation from 1.1056 is still in progress and could extend for a while. But a break of 1.1056 is expected eventually to resume larger down trend.
