The IFO business climate index is highly regarded economic indicator that measures the current business condition of German firm’s including wholesale, retail, construction and manufacturing industries. It also measures business expectations for next six months.
The IFO business climate index is based on survey of 7000 firms, asking them different question about their current business climate conditions and what they expect for next six months. The report of survey is compiled by IFO business climate index, which is published on monthly basis.
The reading higher than expected taken as bullish/positive for EUR, while reading lower than expected taken as bearish/negative for EUR.