Despite the VW scandal, German business confidence has remained relatively stable, the latest ifo index revealed.
The monthly ifo business confidence index declined from 108.5bsp in September to 108.2bsp in October, beating the more conservative Reuters forecast of 107.8bsp.
While businesses in Germany were overall slightly less satisfied with the economic situation compared to the previous month, the six month economic outlook improved from 103.3 to 103.8bsp month on month.
“The German economy remains surprisingly resilient to the manifold challenges of the autumn season. The car industry remains unimpressed by the VW scandal, the business confidence in the automotive industry even showed marked improvements” comments ifo president Hans-Werner Sinn.
The index, which is based on reports from 7000 businesses in Germany, revealed that the construction industry remains the most pessimistic, confidence in manufacturing and retail deteriorated, while the wholesale sector remained stable.