German business sentiment slumps
Germany’s economy is currently on track in today’s macro updates, which include February’s issue of the Ifo’s poll numbers, tracking business sentiment. Later, two major American number will gain close attention. These are last month’s information for currently existing home sales and February’s US Consumer Confidence Index.
Lately, the economic news for the EU’s major economy has been on the soft side. Earlier this months analysts have learnt that December’s industrial production slumped for a second straight month, thus reflecting everlasting weakness in exports markets.
By the way, last week’s ZEW data unveiled that financial analysts kept downgrading macro expectations. From their point of view the looming downtime of the world economy, not to mention quite uncertain consequences of dropping crude prices put a strain on the ZEW Indicator of Economic Sentiment.
Nobody is aware yet whether today’s sentiment data for Germany’s business sector is going to keep trimming expectations or not. At least, today one requires taking into account weakness, mentioned in the previously published January’s profile. Additionally, last month the Ifo’s business expectations index went down abruptly, sagging to its five-month low of 102.4.