With dropping expectations and an only somewhat improving current assessment, the November Ifo index suggests that the German economy remains deeply stuck in stagnation at year-end
The Ifo index increased in October on the back of improving expectations, while the current assessment worsened once again
Even without ground control calling, German optimism has been brought down by a mix of US tariffs, a stronger euro and the political inability to combine fiscal stimulus with growth-enhancing reforms
The ongoing improvement in business sentiment reflects the strong belief in the healing nature of fiscal stimulus
While Germany is still digesting and debating Sunday's election results, the latest Ifo index reading suggests that the economy remains stuck in stagnation.
