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.