German Ifo index likely contracted in November

The business climate indicator for German remains at historical highs and is also high in compare to other business surveys. This might be because of a greater number of respondents covering the domestic economy, which is holding up well. 

Analysts expect an further improvement in current conditions, although some uncertainty created by VW scandal and the recent Paris terror attacks may affect. However, industry, trade and investment are likely to show poor performance, but this may be compensate by the resilient consumption and some fiscal easing.

The Ifo business climate index of German is expected to contract to 107.7 in November from 108.2 in October, estimates Societe Generale.