BERLIN, Sept. 24 (Xinhua) -- German business confidence fell slightly in September after rising stronger than expected during August, a study published on Monday by the Ifo Institute for Economic Research (Ifo) finds.
The closely-watched Ifo Business Climate Index compiled rose by 0.2 points to 103.7 points in September. The finding is based on a monthly survey by the Munich-based institute of 9,000 managers at German companies from diverse sectors of the economy.
"The German economy is stable, even if uncertainty is growing", a statement by Ifo president Clemens Fuest read. Ifo noted that the decline in confidence was due to more pessimistic assessments of the current commercial situation of businesses, as well as their future prospects.
Broken down by economic sectors, the steepest decline in business sentiment in September was recorded in the German manufacturing industry where business leaders rated their current situation significantly worse than they had in the previous month. At the same time, however, future expectations improved to the highest level since February with companies making concrete plans to ramp up production.
By contrast, business sentiment in the service sector was largely unchanged although the outlook for the coming six months darkened slightly. Optimism increased again in the retail sector and Germany's booming construction industry.
The findings appeared to confirm recent forecasts by the German Central Bank (Bundesbank), as well as several leading think-tanks that stronger domestic consumption will offset weaker momentum in the important national industrial manufacturing sector as unemployment continues to fall and wages rise. Traditionally-export oriented industrial firms in Germany have repeatedly expressed concern that their earnings are likely to fall as a result of growing protectionism exemplified by the "America First" doctrine of U.S. President Donald Trump.
