IFO indicators capturing business assessments of current German economic conditions fell in August.
The new data, which came in below analysts’ expectations, is the latest in a string of data to suggest a slowdown in German economic growth. Markit’s PMI figure, published on Tuesday, showed a decrease in August, alongside Wednesday’s lower GDP growth rate.
IFO indicators for German economic conditions miss estimates
The IFO Current Assessment indicator, published by CESifoGroup Thursday morning, came in at 112.8. The figure is 2 points lower than July’s measure and missed estimates by 2.1 points.
Similarly, the IFO assessment of business climate in August fell by 2.1 points, to 106.2, 2.3 points than the consensus prediction.
The indicator of future expectations fell to 100.1, also down 2 points from the previous month and missing estimates by 2.4 points.
While the data deviates greatly from analysts’ predictions, with all indicators falling instead of rising to estimated higher levels, they are not yet critical. Similar figures were last seen at the start of the year and they are well above figures during the height of the global financial crisis in 2009, where IFO Current Assessment was as low as 89 in November.
German data releases this week show reduced growth
The Markit PMI Composite for August, published by Markit Economics on Tuesday, stood at 54.4, down 0.9 points from July’s figure. This measure was 0.6 points lower than analysts had estimated.
German GDP growth for the second quarter of the year was reported by DEstatis on Thursday.
The figure matched estimates at 0.4%, representing a 0.3% decrease from the first quarter.
The German Gfk Consumer Confidence Survey will be published on Friday and give further indication as to the perception of German economic conditions over the next month.
While Germany saw some unexpected reductions in growth indicators, Euro-Zone figures have been mixed this week.
The Euro-Zone Markit PMI came in at 53.3, up 0.1 points from July.
However, an indicator of consumer confidence, published by the European Commission, came in at -8.5. The figure was 0.6 points lower than July’s figure and 0.9 points lower than analysts’ estimates.
Katharina Fleiner 25/08/2016
