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Ifo says euphoria gone but German economy still humming

Published 02/22/2018, 04:37 AM
Updated 02/22/2018, 04:40 AM
© Reuters. FILE PHOTO: Cars and containers are pictured at a shipping terminal in the harbour of the German northern town of Bremerhaven

MUNICH, Germany (Reuters) - German companies are less euphoric about the economy than in the last few months but it is too early to talk about a fundamental shift, Ifo economist Klaus Wohlrabe said after a fall in the institute's business confidence index.

"I would not yet speak of a change in the underlying trend, the German economy is still doing very well, but some of the steam has been let off," he told Reuters.

He saw a clear decline in demand for industrial goods and said conservative Chancellor Angela Merkel's coalition deal with the center-left Social Democrats (SPD) was no cause for "jubilation" as big tax reforms were not on the agenda.

© Reuters. FILE PHOTO: Cars and containers are pictured at a shipping terminal in the harbour of the German northern town of Bremerhaven

"Companies are barely mentioned (in the deal). Businesses are rather sober about it," said Wohlrabe.

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