The monthly ifo business climate index for Germany has declined slightly in September from 115.9 to 115.2 basis points compared to the previous month.
While the index still exceeds long-term average levels, both the assessment of the current business climate in Germany as well as the long-term outlook deteriorated.
These more cautious assessments were particularly tangible for the wholesale sector, where the month-on-month outlook dropped from 23.7 to 19.3 points. The views on the manufactoring industry also deteriorated slightly, from 29.9 to 27.9, while the assessment of the retail- and construction sector outlook improved slightly.
Jens Kramer, analyst at NordLB comments: The confident, yet cautious outlook is very much in line with our forecasts of a slightly less dynamic but nevertheless solid economic growth in Germany compared to the first half of 2017. The foreseeable Jamaica coalition led by Angela Merkel is likely to resume its job in a healthy economic climate.”