Another weakening in the German Ifo expected

Societe Generale notes:

In July, we expect the Ifo business climate index to decline to 107, from 107.4 in June. The Ifo survey has fallen in the past two months but remains at a relatively high level compared with other surveys. As other surveys are expected to improve or stabilise, we expect also the Ifo to do so in a few months, barring any major shocks. 

Growth estimates based on the Ifo thus continues to signal relatively high growth in Q2 and Q3. As in other surveys, we expect only a small decline in expectations while current conditions should continue to adjust down