Comments by Ifo economist, Klaus Wohlrabe, following the data earlier
- Expectations fell again
- Consumption remains intact
- Demand from abroad and at home for industrial products is weakening
- Brexit and US government shutdown are dampening business climate
- Business climate index confirms our GDP forecast of 1.1% for Germany in 2019
While not really displaying recession-like symptoms just yet, the signals in the German economy is growing increasingly worrying. The Ifo data earlier suggests that any possible rebound in industrial/factory activity is likely to be temporary and the drag looks set to continue into the new year.
The real concern now will be if the slowdown gathers pace and we see German growth start heading to a standstill this year.
