German Business Confidence Higher Than Expected in October

The mood among German business managers deteriorated by less than expected in October, with firms in the automotive sector unfazed by the recent emission scandal at car maker Volkswagen AG.

The IFO think tank said Monday its business climate index fell to 108.2 in October from 108.5 in September, its lowest level since July. Economists polled by The Wall Street Journal had forecast a decline to 107.8.

“The Volkswagen scandal has had no impact on the German automotive industry,” as the mood in the sector picked up further in October, said IFO President Hans-Werner Sinn.

The survey showed that German firms in general were less content with their current business situation but grew more optimistic about future trade, despite the slowdown in China and other emerging economies.

“The German economy is proving remarkably resilient in view of this autumn’s multiple challenges,” Mr. Sinn said.

The survey follows a string of disappointing economic news, raising a question mark over the robustness of Germany’s economic upswing. The Federal Statistical Office earlier this month revealed steep falls in both manufacturing orders and i ndustrial production in August, as exports registered their steepest decline in almost seven years.

via MarketWatch

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza