Germany: Ifo sentiment seen weakening on Iran war – Commerzbank
Commerzbank economists Christoph Balz and Ralph Solveen expect the Ifo Business Climate Index to slip from 86.6 to 86.0 in August as renewed Iran war concerns and higher energy prices weigh on expectations.
Commerzbank economists anticipate the Ifo Business Climate Index to decline from 86.6 to 86.0 in August due to concerns over the Iran war and rising energy costs. The analysts note that while the index may have already fallen in August, its impact on current activity remains limited. The potential effect of supply chain disruptions from low river levels is also mentioned as a possible pressure factor.
The more crucial question lies in whether the pressures influence the perception of the current business situation. The subcomponent assessing the present business climate has remained relatively unchanged since the onset of the Iran war, indicating that higher energy prices have not significantly affected companies' operations.
However, the assessment of the current business situation is considered more uncertain than expectations.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
