The report from the IFO Institute for Economic Research showed that business climate index fell to 108.2 in October from 108.5 in the previous month. The experts forecasted a bigger decline to 107.8.
Meanwhile, IFO expectations rose to 103.8 in the reporting period from 103.3 in September. The analysts also expected a fall to 102.4.
Earlier, consumer price index was released showing that the prices in Germany hadn’t changed in autumn compared to a 0.2% increase in summer season. At the same time, IFO current assessment dropped to 112.6 in October from 114 in the previous month. The experts anticipated a slighter decline to 113.5.
Business confidence decreased for the first time in four months. The experts suggest that business confidence declined against the backdrop of a slowdown in global demand for German economy. This June, the Bundesbank increased its forecasts for German GDP growth from 1% to 1.7% in 2015, and from 1.6% to 1.8% in 2016.
