FRANKFURT, Germany – A closely watched survey says German business optimism took a dip in September ahead of federal elections and amid concerns about a stronger euro.
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The Ifo business climate indicator fell to 115.2 points from 115.9 in August.
Stephen Brown, European economist at Capital Economics, says the stronger euro may have weighed on sentiment. A stronger currency can hurt a country's exports. The euro has risen to around $1.20 from $1.05 at the start of the year.
Nonetheless, the survey result remains well above the long-term average since 1991 of 102.1 as Germany enjoys steady growth and low unemployment.
The survey published Monday by the Munich-based Ifo institute is a leading indicator, meaning it is intended to give a sense of where the economy is going in coming months.