The mood in the German economy remained stable in October. The Ifo business climate remained at the level of the previous month of 94.6 points, said the research institute Ifo. In August, the most important German economic barometer had reached its lowest level since the end of 2012, in September it had risen surprisingly again.
Analysts had expected a slight decline to 94.5 points in October. "The German economy is stabilizing," said Ifo President Clemens Fuest. While senior executives were more pessimistic about their business than they were recently, their outlook for the coming six months was better.
The Ifo index is based on the survey of about 9000 companies. The indicator is considered a reliable indicator of Germany's future economic growth.
Development of business climate
The Bundesbank believes that economic output may have fallen slightly in the third quarter as well. If the forecast is correct, the economy is in a so-called technical recession - which occurs when gross domestic product (GDP) shrinks for two quarters in a row. In the spring, GDP had already fallen by 0.1 percent.
For the entire current year, the Federal Government expects only 0.5 percent growth. The industry in particular suffers from international trade conflicts.