German Ifo business climate index so far in July
According to a report provided by the Ifo Institute for Economic Research, the German Ifo Business Climate Index has weakened marginally so far in July compared to June. This index reached 101.7 in July (through July 25) compared to 101.8 in June. The index beat the market expectation of 101.5. July’s reading was the index’s lowest level since March 2017.
The sentiment of manufacturers fell to 22.4 so far in July, compared to 23.9 in June. The sentiment of wholesalers fell to 10.4 so far in July compared to 11.4 in June. However, the sentiment of the construction industry rose to 27.4 so far in July, compared to 19.4 in June.
The sentiment of service providers improved to 26.7 so far in July, compared to 26.0 in June. The weaker client demand in Germany has subdued its business confidence, and the rising global trade tensions added uncertainty to the country’s economic activity.
Performance of ETFs
The iShares MSCI Germany ETF (EWG), which tracks the performance of Germany (DAX-INDEX), has risen 4.2% so far in the month (through July 27). Similarly, the iShares MSCI Germany Small-Cap ETF (EWGS), which tracks the performance of the small-cap stocks in Germany, rose 5.3% during the same period.
In the next part of this series, we’ll look at the performance of the Germany ZEW economic sentiment index so far in July.