German Business Confidence Weakens Further in November
Sentiment among German businesses weakened more than expected in November. The Munich-based Ifo economic institute reported, that its business climate index dropped to 102.0 in November, down from 102.9 and missed forecast of 102.3. Current assessment gauge fell to 105.4 in November, down from 106.1 in October and missed expectation of 105.6. Expectations gauge fell to 98.7, down from 99.7, missed expectation of 99.3.
Trade tension between the world's two largest economies are hurting German companies that manufacture in both countries. The trade war also weighed on Germany's export sector and hurt the economy.
Last week’s data showed, that the German third quarter GDP fell by 0.2%, making the first quarterly contraction since 2015. According to the Ifo, the German economy would probably grow by 0.3% in the fourth quarter.