FX.co ★ German business confidence weakens

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.