Germany: Unchanged readings for both the headline and current IFO assessment expected - TDS

Research Team at TDS, suggests that German survey data has been mixed heading into today’s IFO report, with the ZEW survey showing bigger declines than expected, but the PMIs coming in stronger than expected.

Key Quotes

“Taking all this into account, our models point to unchanged readings for both the headline and current assessment for July, but for expectations to fall by about half a point, leaving us above consensus for all three components.

UK: July & Q3’s CBI industrial trends survey is out, which on the surface won’t provide much more information than Friday’s PMIs. But we’ll keep a close eye on the investment intentions series, which gives a sense of how businesses will be adjusting their spending plans in response to Brexit uncertainty. Uncertainty remains high in this sector: the weaker exchange rate is helping many manufacturers, but uncertainty about future trade arrangements is likely dampening confidence.”