Despite the global scandal surrounding Volkswagen, German business optimism remained unfazed in October, according to the latest survey by the Ifo Institute for Economic Research.
The Ifo Business Climate Index for German industry and trade fell to 108.2 points in October, from 108.5 points in September, data released on Monday showed. It was the first drop since June this year.
Nevertheless, optimism on future business developments continued to grow, Ifo's data showed, signaling that the emissions scandal surrounding Germany's automaker Volkswagen has not had as much of an effect on sentiment as previously feared.
The business expectations index rose from 103.3 in September to 103.8 in October (the highest level since June last year) although the assessment of current conditions fell from 114.0 to 112.6 over the same time frame.