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Bloomberg
German business sentiment soured further as signs of cooling foreign demand and rising trade tensions continued to drag on growth after a summer economic contraction.
The Ifo institute’s gauge of corporate confidence in Europe’s largest economy fell to 102 in November from 102.8 in October. That’s the third straight decline and is likely to add to concerns among some European Central Bank policy makers that it’s too soon to start reining in stimulus. Measures for current conditions and expectations both worsened.
There were also disappointing numbers in Japan, with a key gauge of manufacturing falling to its weakest level in two years in November.
The data suggest weakness in Germany may be more deeper than the difficulties with emissions-testing rules that hit the auto industry.
A Purchasing Managers’ Index showed private-sector growth at the weakest in almost four years. Germany’s third-quarter contraction was led by a drop in exports and private consumption.
The OECD cut its global growth forecast last week and warned of rising risks. Japan’s Manufacturing PMI dropped sharply to 51.8 in November for its lowest reading since late 2016. The Bundesbank says that it expects the German economy to see “fairly strong growth again†this quarter as car production and exports return to normal.