Germany: IFO paints dismal picture of economy - TDS

Analysts at TD Securities point out that the German IFO expectations for January fell more than expected to 94.2, the lowest level since late 2012.

Key Quotes

“IFO current assessment was more resilient, slipping modestly to 104.3 (mkt: 104.2). That’s still the lowest since mid-2017, around the time when the ECB upgraded its balance of risks from downside to balanced.”

“Overall the report mirrors the downbeat tone seen in other surveys this week, notably PMIs. Lack of improvement next month will strengthen the case that the recent weakness in activity is becoming more persistent. That of course has implications to ECB’s ‘state contingent’ policy setting.”