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Germany: IFO expectations for June to drop to 96.8 - Nomura

Analysts at Nomura suggest that they continue to expect incoming survey data for the euro area to exhibit some weakness.

Key Quotes

“In his speech last week ECB President Draghi highlighted how the euro area economy is still strong and solid. At the same time, however, he noted that uncertainty surrounding the growth outlook has recently risen, mainly due to rising oil prices and fears of increasing protectionism.”

“In line with the above comments, we continue to expect incoming survey data for the euro area to exhibit some weakness. We specifically expect Germany’s Ifo expectations component for June to drop to 96.8 (from 98.5 in May), while we expect a more moderate decline in the current situation component, to 105.1 from 106.0 in May.”

 

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