German business confidence dips

Posted on November 24, 2016

Business confidence in Germany slipped slightly from last month’s two-and-a-half-year highs in November, according to a closely-watched survey by the country’s Institute for Economic Research.

Ifo’s overall business climate index edged down from 110.5 to 110.4, with a decline in expectations offsetting an improvement in businesses’ assessments of current trading.

Assessments of current business increased slightly to 115.6, but the measure of future business expectations fell back to 105.5 after jumping last month.

Germany’s official statistics agency confirmed a slowdown in economic growth in the third quarter this morning, but the Bundesbank has predicted the economy will enjoy a significant rebound. Ifo president Clemens Fuest said “the economic upturn in Germany remains intact”.

Mr Fuest added that “the German economy seems to be unfazed” by Donald Trump’s US election victory, despite the think tank’s warning earlier this month that the result represents a “major risk” for the world economy.

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