German Ifo Business Climate Index Dips In October

Forex News

German business confidence falls in October for the second month in a row, amid growing concerns about trade disputes, uncertainties about Brexit and concerns over Italy's budget deficit. The Munich-based Ifo economic institute said its business climate index fell to 102.8 in October, lower than forecast of 103.0.

Meanwhile, the current assessment sub-index fell to 105.9 in October from 106.4 in September, compared to expectations for 106.0. The business expectations index, which measures attitudes toward business prospects over the next six months, dropped to 99.8 in October from 101.0 last month and missed estimates for a reading of 100.3.

The German economic growth is slowing, as trade disputes, Brexit negotiations and concerns about Italy's state finances are unnerving companies. Earlier, the German government has lowered its economic growth forecast for this year to 1.8% from 2.3% previously. Meanwhile, the German economy expanded by 2.2% last year.