German ifo index beats expectations
The July ifo business climate index for Germany increased from 107.5 to 108.0bsp MoM, both the assessment of the current situation and the outlook improved, suggesting that the German economy continues to recover.
The monthly index, which is based on reports from 2500 businesses across Germany, recorded improvements in manufacturing and wholesale sectors, while the business climate in the construction, retail and services industry deteriorated again.
The business climate for the wholesale sector showed the strongest levels of improvement, increasing from 7.5 to 14.1 bsp, while the climate for the services industry declined from 27.4 to 25.9 bsp. The six month economic outlook for the German services sector declined from 18.3 to 14.9 bsp, as providers expect prices to remain stagnant for the coming months.