German economy to grow above 0.5% qoq in Q3

In September, Germany's Ifo business climate index is likely to have declined 0.4 pts to 107.9. As before, the expectations component was expected to have been more affected by market turbulence and uncertainty over China, while the assessment of current conditions is likely to have held up well. 

Despite the weakening, the business climate index remains nearly 1 standard deviation above its long-term average, signalling a still robust outlook for the German economy. The Ifo indicators also remain at relatively high levels relative to other surveys, certainly for the manufacturing and financial sectors, signalling GDP growth above 0.5% qoq in Q3, says Societe Generale.