There has been no immediate “Trump effect” on German business sentiment, despite a decline in future expectations, economist with Munich-based research institution IFO Klaus Wohlrabe said on Wednesday.
He said German firms were waiting for actions from Mr Trump, not just words and nothing has yet been decided on protectionist measures.
“There is no Trump effect seen in the numbers as export expectations have risen, even in the car industry,” said Mr Wohlrabe.
Mr Trump has warned German car companies such as BMW that he plans to impose a border tax of 35 per cent on vehicles imported to the US market.
The IFO business climate index fell to 109.8 points in January from 111.0 points in December as companies said they were less optimistic about their six-month outlook.
That fall-off was evident in the manufacturing sector, where the index fell due to markedly less optimistic business expectations. But manufacturers were more satisfied with their current business situation.
There was also a cool-off in wholesaling, following a temporary high in December, and retailing also saw a a decline as outlets remained cautious about their short-term business outlook.
The business climate in construction showed some signs of cooling, but the current business situation index still hit a new high this month.
The IFO was sticking to its forecast that the German economy would grow by 1.5 per cent this year.
– (Additional reporting: Reuters)
