German business climate for industry and trade fell in July less than expected, dropping to 108.3 points from 108.7 points a month earlier. The German economy shows that it is resistant to shocks, despite that business mood worsens slightly. The economists expected stronger decrease to 107.5 points and were pleasantly surprised by the Munich Institute for Economic Research. The Brexit referendum and putch in Turkey, do not worry German business.
Analysts noted that it already had indications from published last week index for the manufacturing sector. It reached its highest level since the beginning of 2014, the economy is supported by a strong labor market and growing demand. The economists expect UK soon to fall into recession, which could lead to losses for German exporters. The good news is that German companies receive votes in the UK relatively quiet
The German production also has slightly decreased. Although industrial companies expressed greater satisfaction with the current situation and fill their capacities increased by 0.3 percentage points to 84.7%, they look less optimistic about the future. The automotive industry even reported pessimistic expectations. However, about one third of companies in the manufacturing sector fear that a possible exit of Britain from the EU will have a negative impact.
Meanwhile, in the field of wholesale business climate deteriorated in the retail and construction sectors there is a reverse trend. In construction index jumped to new records.
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