German IFO Business Climate Index declines to 85.4 in September vs. 86.0 expected

• German IFO Business Climate Index misses estimates with 85.4 in September.
• The IFO Current Economic Assessment Index fell to 84.4 in the reported month.

The headline German IFO Business Climate Index dropped to 85.4 in September from 86.6 in August, missing the market expectations of 86.0.

Meanwhile, the Current Economic Assessment Index fell to 84.4. in the same period from 86.4 recorded in August. The reading came in below the estimated 86.1 print.

The IFO Expectations Index – indicating firms’ projections for the next six months, dropped to 86.3 in September vs. 86.8 in August and 86.3 forecast.

Market reaction to the German IFO Survey

EUR/USD shrug off mostly downbeat German IFO survey. At the time of writing, the pair is trading 0.18% higher on the day at 1.1135, awaiting the Fedspeak and US Consumer Confidence data.

About German IFO

The headline IFO business climate index was rebased and recalibrated in September after the IFO Research Institute changed the series from the base year of 2000 to the base year of 2005 as of September 2011 and then changed series to include services as of September 2018. The survey now includes 9,000 monthly survey responses from firms in the manufacturing, service sector, trade and construction.