Published: Wed, September 27, 2017
Economy | By Melissa Porter

Germany Sept IFO business climate 115.2 vs 116.00 exp

Germany Sept IFO business climate 115.2 vs 116.00 exp

German business sentiment slipped in September, albeit from a high level, as companies lowered their outlook, according to the Ifo Institute's monthly survey, which was conducted ahead of Sunday's general election.

The Munich-based Ifo institute's closely-watched business confidence index fell to 115.2 points this month, a 0.7-point drop compared with August and short of predictions from analysts surveyed by Factset. Although the 2,500 managers surveyed by Ifo downgraded their assessment of the current economic situation, they have upgraded their expectations for the coming half year for the fifth time in a row.

Stephen Brown, an economist at Capital Economics, said that a more likely cause of the decline is the recent strength of the euro, rather than political uncertainty.

A sector breakdown of the Ifo figures showed the main drag came from manufacturing and wholesaling while sentiment improved against the trend in construction and retailing.

The expectations report is for 6 months out.

A growing population, increased job security and record-lowinterest rates are fuelling a property boom in Germany.

Meanwhile, European stock markets were mostly higher after the open.

Business confidence is falling, and this happened before the election results.

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