Germany’s business confidence weakened in September as companies scaled back their expectations amid deteriorating current situation, survey data from the Mannheim-based Ifo institute showed Monday.
The business sentiment index fell less-than-expected to 103.7 in September from 103.9 in August. Economists had forecast the score to drop to 103.2 from the originally estimated 103.8 in August.
Ifo President Clemens Fuest said the German economy remains robust, despite the growing uncertainty.
Joerg Kraemer, chief economist at Commerzbank, said as the Ifo index hardly fell in September, defending the strong rise in August, the weakness in the Ifo business climate is probably over.
The strong domestic economy is almost completely offsetting the soft patch in the export-oriented industry, the economist added. Kraemer expects the German economy to continue growing strongly.
The survey showed that current assessment indicator dropped marginally to 106.4 in September from 106.5 a month ago. The expected score was 106.
Likewise, the expectations index came in at 101.0 in September, down from 101.3, but above the forecast of 100.5.
In manufacturing, the index fell due to far poorer assessments of the current business situation, while business expectations climbed to their highest level since February. Manufacturers plan to ramp up production in the months ahead.
In the services sector, the business climate remained almost unchanged as improvement in current business situation was offset by the fall in their six-month business outlook.
In trade, the index rose again in September. Traders upwardly revised their assessments of both the current business situation and their expectations.
In construction, the business climate index continued to rise with the business climate and its sub-components hitting new record highs.