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BERLIN, May 25 (Reuters) – German business confidence remained stable in May after falling for five consecutive months, showed a survey on Friday, suggesting the mood Among the executives of the company in Europe The largest economy is stable despite the possibility of a global trade war.
The Ifo economic institute based in Munich said its business climate index remained stable at 102.2, slightly surpbading a consensus consensus forecast of 102.0 for a reading of 102.0.
An economist from Ifo said that the domestic economy – particularly trade, construction and services – had been largely responsible for stabilization while there was no "euphoria" in the export sector, which historically has driven the economy.
"The downward trend has stopped," Wohlrabe told Reuters. "Above all, the strength of the domestic economy contributed to the stabilization of the economy … The global economic environment is difficult, but the German economy remains firm."
But Andreas Scheuerle, an economist at DekaBank, said that the business climate's downward trend was not over yet, adding: "The news that currently rains about companies really does not lend themselves to creating a positive mood "
He pointed out the possibility of US import tariffs on cars and concerns about Italy's new government, but said the news had come towards the end of the survey period, so they would not weigh on the index until the month next.
Germany, a major exporter, faces a number of risks including the prospect of US import tariffs on aluminum and steel, a possible global trade war and the possibility that German firms operating in Iran will face sanctions later. of the US decision to back outside of Iran's nuclear agreement.
Other recent data have given a negative image, showing a slowdown in economic growth, the morale of investors remains at its weakest level in more than five years and the mood among consumers getting worse.
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