Germany: Fifth consecutive decline in the IFO sentiment survey - BBH

Germany reported a fifth consecutive decline in the IFO sentiment survey and the decline appears to be larger than expected, according to analysts at BBH. 

Key Quotes

“However, there were some methodological changes, which include a new base year, 2015, and reducing the weight of the manufacturing sector by half ( to 30%) and boosting the service sector.  Without getting lost in the details, the takeaway is that the deterioration of investor sentiment seen in Q1 has spilled over to Q2.   This is broadly consistent with yesterday's PMI that reported a fourth consecutive month that manufacturing slowed.  The service sector rose slightly, but the reading was still the second lowest since last August.”