24 Jun 2014
German IFO declines for second running month in June - BNP Paribas
FXStreet (Łódź) - Caroline Newhouse from BNP Paribas points out that the German IFO Business Climate index, released today, fell for the second consecutive month in June, adding however that the survey is still consistent with dynamic growth in the second quarter, though decelerating when compared to the first quarter.
Key quotes
" The IFO business climate index decreased more than expected in June, down from 110.4to 109.7, back to December 2013 level."
"Indeed, the business climate index averaged 110.4in Q2, a few notches below Q1 average at 110.9."
"Business climate decreased in the manufacturing sector, where the business climate index was down from 19.0 in May to 15.7, the lowest level since December 2013."
"Conversely, the business climate improved in construction after four consecutive declines (from -4.0 to -3.7), in wholesale trade (from 11.4 to 12.5) and retailing (from 4.9 to 8.1), indicating that internal demand is improving."
"The current situation index remained unchanged at 114.8 in June. Conversely, the expectation index declined further from 106.2 to 104.8, the lowest level since October 2013."
"The IFO survey confirms the results of the PMI survey, released yesterday. The PMI composite output index was down from 55.6 in May to 54.2 in June, remaining nonetheless above the 50-threshold for the fourteenth month in a row."
Key quotes
" The IFO business climate index decreased more than expected in June, down from 110.4to 109.7, back to December 2013 level."
"Indeed, the business climate index averaged 110.4in Q2, a few notches below Q1 average at 110.9."
"Business climate decreased in the manufacturing sector, where the business climate index was down from 19.0 in May to 15.7, the lowest level since December 2013."
"Conversely, the business climate improved in construction after four consecutive declines (from -4.0 to -3.7), in wholesale trade (from 11.4 to 12.5) and retailing (from 4.9 to 8.1), indicating that internal demand is improving."
"The current situation index remained unchanged at 114.8 in June. Conversely, the expectation index declined further from 106.2 to 104.8, the lowest level since October 2013."
"The IFO survey confirms the results of the PMI survey, released yesterday. The PMI composite output index was down from 55.6 in May to 54.2 in June, remaining nonetheless above the 50-threshold for the fourteenth month in a row."