Weaker expectations but resilient German current conditions expected in September

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. 

"In September, the Ifo business climate index is expecred to have declined 0.4 pts to 107.9. As before, the expectations component is likely 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", says Societe Generale. 

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.