German IFO bettered estimates in November – ING

By FXStreet FXStreet (Delhi) – Carsten Brzeski, Research Analyst at ING, notes that the German businesses showed an interesting reaction to the recent series of uncertainties and turmoil as the country’s most prominent leading indicator, the just released Ifo index, increased to 109.0 in November, from 108.2 in October, offsetting last month’s drop.

Key Quotes

“Interestingly, both the current assessment and the expectations component increased. In fact, expectations increased to their highest level since May last year.”

“Today’s Ifo reading suggests that the German business community is filing the Volkswagen scandal as a one-off and also shrugs off the risk from a possible Chinese and emerging markets slowdown as well as new uncertainty stemming from the Paris events. Still, the positive Ifo reading is a bit of a conundrum as it is not entirely matched by positive hard data.”

“In our view, hard data since the start of the year showed that the German industry is actually going through rough times. Latest industrial production data suggested that the summer slump was more than only vacation-driven. In fact, the industry has underperformed since the beginning of the year, being confronted with several external headwinds. Currently, an additional headwind could be low, or better too low, oil …read more

Source:: FX Street