German Business Morale Dips Slightly In September

Confidence among German business leaders dipped slightly in September but remained strong, a closely-watched survey said Monday, as Europe's export powerhouse nervously eyes an escalating trade war between the United States and China

Frankfurt am Main, (UrduPoint / Pakistan Point News - 24th Sep, 2018 ) :Confidence among German business leaders dipped slightly in September but remained strong, a closely-watched survey said Monday, as Europe's export powerhouse nervously eyes an escalating trade war between the United States and China.

The Munich-based Ifo institute's monthly barometer slipped to 103.7 points from 103.9 the previous month, when the index hit its highest level since February.

The reading beat expectations, with analysts surveyed by Factset predicting a steeper drop in morale.

"Despite growing uncertainty, the German economy remains robust," Ifo chief Clemens Fuest said in a statement.

Companies' assessments of both their present economic situation and future expectations fell back somewhat but "remain at a high level", he added.

Manufacturers were most pessimistic about the current economic situation, the survey found, but the mood was buoyant among construction firms which reported "a steady stream of incoming orders".

Joerg Zeuner, chief economist of KfW Group, said September's small drop in sentiment was realistic given the trade tensions sparked by US President Donald Trump's "America First" policies.

"A domestic economy that continues to be strong is set against a somewhat stuttering demand from abroad," Zeuner said.

The Ifo survey was released on the same day that fresh US tariffs on another $200 billion of Chinese imports took effect, prompting Beijing to respond in kind.

The festering trade dispute between the economic giants has clouded the global outlook as firms around the world, including in export-nation Germany, brace for knock-on effects that could disrupt international supply chains and hurt demand.