German business confidence deteriorates to two-year low

Bloomberg

German business sentiment deteriorated further to its lowest level in more than two years as trade tensions and the rising risk of a no-deal Brexit threaten to hamper a meaningful economic rebound from a summer lull.
The Ifo Institute’s gauge of corporate confidence in Europe’s largest economy fell to 101.0 in December from 102.0 in November. The fourth straight decline will add to concerns about economic prosp-ects in Germany and the 19-nation euro area after the European Central Bank decided to rein in stimulus.
The report suggests Germany may have to overcome bigger hurdles than new emissions-testing rules, which hit the auto industry in the third quarter and led to a contraction in economic output. Gauges for current conditions and expectations both decreased. “Across the board we have a less optimistic scenario here,” Ifo President Clemens Fuest said in an interview. “We’re not seeing a downturn here, but certainly a cooling of the economy.”