The monthly Ifo index is based on a survey of around 7,000 German firms in the manufacturing, construction, wholesale and retail sectors. In manufacturing the business climate index fell considerably: businessmen expectations even fell to their lowest point for over six months.
However, in wholesaling the business climate improved. After a sharp drop in May, assessments of the current business situation were far more favourable, but wholesalers are less optimistic about the future. In retailing the business climate brightened considerably. In construction the business climate index improved slightly after four successive decreases. Assessments of the current business situation remained almost unchanged at a high level.
The data had an immediate impact on the euro, which turned lower against the U.S. dollar, with EUR/USD shedding 0.04% to trade at 1.3598, compared to 1.3607 ahead of the data.