The mood in the executive floors of the German economy improved slightly in September after five consecutive declines. The Ifo Business Climate Index rose to 94.6 points from the previous month's 94.3, as Munich's Ifo Institute announced on Tuesday, citing its monthly survey of some 9,000 managers.
In August, the most important German economic indicator was still at its lowest level since November 2012. Experts had expected a smaller increase to 94.4 points. "The downturn is taking a break," said Ifo President Clemens Fuest. Executives judged their business situation more favorable than most recently, but their outlook for the coming six months, somewhat skeptical.
Neither the all-clear nor cause for greater concern
The German economy is currently on the threshold of recession. Gross domestic product shrank by 0.1 percent in the spring. Should the end of September ending summer quarter be weaker, this is already considered by experts as a recession, even if the economy should grow again thereafter. The Bundesbank considers this possible, but sees it as "no cause for concern".
In addition to the end of October, Britain's exit from the EU, the export-dependent industry is particularly troubled by the trade dispute sparked by US President Donald Trump. Professionals also see a great danger in the fact that the service providers are pulled into the downward spiral. That would noticeably slow down the still well-running domestic economy.