German Business Confidence Weakened Slightly in September

Forex News

Business confidence in Europe’s largest economy fell slightly in September, pointing that company executives have become somewhat less confident about the growth outlook of Europe's biggest economy. The Munich-based Ifo economic institute said its business climate index fell to 103.7 in September from 103.9 in August. Economists had expected a decline to 103.2 level.

It was also reported, that the current assessment indicator stood at 106.4 in September versus revised 106.5 a month ago. Nonetheless, the indicator was above the forecast of 106. At the same time, the expectations index came in at 101.0 in September, down from 101.3, but above the forecast of 100.5 points.

Germany’s economy is heavily dependent on global trade, and businesses have been unsettled by new tariffs imposed by US President Donald Trump and the retaliation by China and other trade partners. Germany's growth outlook is also influenced by the unclear outcome of Britain's negotiations with the European Union on Brexit.