Germany EUR

Germany Ifo Current Conditions Final

Impact:
Low

Latest Release:

Date:
Surprise:
-0.6
Actual:
93
Forecast: 93.6
Previous/Revision:
99
Period: Mar
What Does It Measure?
The Germany Ifo Current Conditions Index measures the current state of the German economy based on evaluations from businesses regarding their present situation. Its primary focus is on assessing production, employment, and overall business sentiment, with key indicators including responses related to current business conditions and the economic climate, representing a national measure.
Frequency
This index is published monthly, with a typical release occurring on the last working day of the month and presents a final figure.
Why Do Traders Care?
Traders pay close attention to the Ifo Current Conditions Index because it serves as a timely indicator of economic health, impacting financial markets significantly. Stronger-than-expected results are generally bullish for the Euro and equities, while weaker results can lead to bearish sentiments.
What Is It Derived From?
The index is derived from a survey involving approximately 9,000 German firms across various industries, which assess their current business situation and projections pertaining to economic conditions. The survey uses a diffusion index formula, where responses indicating improvement are weighted against those signaling deterioration.
Description
The Germany Ifo Current Conditions Index presents a comprehensive view of the present economic environment based on business perceptions within the country. The preliminary release of this index is based on early estimates and subject to revisions, while the final report delivers a more accurate reflection of the data gathered.
Additional Notes
This index serves as a coincident economic indicator, correlating closely with current economic performance and broader economic trends within Germany. Its importance is underscored when compared to other indicators, such as GDP growth and unemployment figures, as it provides real-time insight into business confidence.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for Euro, Bullish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
Mar 25, 2020
93
 93.6
99
 -0.6