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German Business Climate Remains Stable in October

The German Business Climate Index remained unchanged in October from the previous month, the German ifo Institute for Economic Research said on Friday.

The monthly ifo Business Climate Index, which reflects the economic sentiment of around 9,000 German companies, stayed at 94.6 points, according to the Munich-based institute.

"The German economy is stabilizing," commented Clemens Fuest, president of the ifo Institute. Although German companies would describe their current situation as "slightly worse than in September," the companies' outlook has improved slightly.

The downward trend in Germany's important manufacturing sector would have been "put to a stop" as the business climate in this sector improved slightly, according to the institute.

The increase was due to "noticeably less pessimistic expectations" for the future, ifo noted. However, Germany's manufacturing companies assessed their current situation less positively than before.

"The services sector and the construction industry continue to be the pillars of the German economy," Klaus Wohlrabe, deputy director of the ifo Center for Macroeconomics and Surveys, told Xinhua.

Business climate in the German services sector remained virtually unchanged as companies had been "less satisfied" with their current situation but their expectations for the future "brightened," according to ifo.

Sentiment among Germany's construction companies declined in October although the German construction companies had still been "very satisfied with their current situation, albeit less so than in September." Business expectation in the German construction sector fell "similarly," ifo noted.

The current "ray of hope" should not be overrated, Wohlrabe emphasized, since "all options remain open" with regard to the United Kingdom's withdrawal from the European Union and trade conflicts.

(www.chinaview.cn 2019-10-30)