Following better-than-expected private sector PMIs and an ECB Economic Bulletin highlighting downside risks to the economy, the focus shifted to German business sentiment this morning.
Germany’s IFO Business Climate Index Sinks
In March, Germany’s Business Expectations Index slid by a record 13.3 points to 85.1. The Current Assessment Index fell more modestly, from 98.6 to 97.0.
As a result, the IFO Business Climate Index fell from 98.5 to 90.8.
According to the March survey,
- In manufacturing, the index fell at the fastest pace on record. Expectations also saw a record decline, with companies rating their business outlook as extremely uncertain.
- In services, business climate also deteriorated markedly. Expectations weakened, with the outlook for the logistics industry particularly bleak.
- In trade, the business climate index collapsed, with the expectations indicator seeing a record fall.
Market Impact
Ahead of today’s stats, the EUR fell to a pre-stat and current-day low of $1.09951 before rising to a pre-stat and current-day high of $1.10379.
Following today’s figures, the EUR rose to a post-stat high of $1.10201 before falling to a post-stat low of $1.10009.
At the time of writing, the EUR was up by 0.09% to $1.10076.
Next Up
Consumer expectation and sentiment figures from the U.S.