Comments by Ifo chief economist, Klaus Wohlrabe, following the report earlier
- Ifo still sticking to full year growth forecast of 1.7%
- Export expectations fell significantly in October
- Car industry emissions problems are hurting business climate
- Trade conflict and Brexit are still main factors for uncertainty
- So far no sign that Italy's budget row is affecting German business climate
Following yesterday's disappointing PMI prints, the release here doesn't help with the rhetoric that we will see a Q4 rebound in the German economy. Domestic figures have been touting a recovery since Q2 and until now we're still not seeing any signs that things will start to turn the corner for Germany.
And with the threat of US auto tariffs next year, it's going to make for an even bleaker outlook over time. The big question now will be how much more of a slowdown here is enough to get the ECB to take notice.
