ZCZC
BCN-20
GERMANY-ECONOMY-INDICATOR-IFO
Trade fears weigh on German business confidence
FRANKFURT AM MAIN, July 25, 2018 (BSS/AFP) – Confidence among German
business leaders fell slightly in July, a closely-watched survey showed
Wednesday, as trade war fears weighed on the outlook for the future.
The Munich-based Ifo institute’s monthly barometer, based on a survey of
9,000 businesses, shed 0.1 points for a reading of 101.7 this month.
“Companies were slightly more satisfied with their current business
situation, but scaled back their business expectations slightly,” Ifo
president Clemens Fuest noted in a statement.
Levels of German business and investor confidence have fallen back in
recent months, as companies weathered a growth slowdown in the first quarter
and eyed an escalating tit-for-tat trade war between the European Union and
the United States.
Early indicators suggest growth may have recovered slightly between April
and June.
But trade war fears remain live, as European Commission President Jean-
Claude Juncker travels to Washington for last-ditch talks with US President
Donald Trump.
Juncker said Wednesday he was “not very optimistic” that he could talk the
US leader out of border taxes on car imports from the EU.
After Trump first hit steel and aluminium with tariffs, the EU reacted with
levies of its own on a selection of American goods like motorcycles, jeans
and peanut butter.
“Chances for a return to powerful growth in the second half of the year
look good, even if there are two weighty risks with the trade dispute between
the US and the rest of the world as well as Brexit,” economists at public
bank LBBW commented on the Ifo result.
BSS/AFP/MR/ 1433 hrs