Ifo comments after the business climate index is released
- Truce in trade conflict with the US contributed to improved business confidence
- That is in addition to the robust domestic economy
That's a similar print to what we had in Q2 for the German economy. So far, the same underlying factors are still at play from Q2 until now and there hasn't been much notable improvement in that sense.
Domestic demand remains solid but exports demand and trade remains the drag so far in 2018. If the latter factors still persist into the end of Q3 and Q4, it will be tough to envisage growth sustaining above 2.0% on a yearly estimate for the German economy.
