German business morale rose surprisingly for the third month in a row in September. This suggests that company executives in Europe’s largest economy are remaining upbeat even though there are concerns of an economic slowdown in China.
Of course, the Ifo institute recognizes that their survey responses will probably change next month from the economic impact of the Volkswagen emissions scandal. As Ifo economist Klaus Wohlrabe said, “We had expected that the export expectations of industry would have perhaps fallen a bit. They did not, they actually rose slightly.”
As Wohlrabe said, “The German economy looks in very robust shape.”