19 October 2001, 13:03  IFO chief economist says Sept index sharp downturn unlikely to continue

FRANKFURT (FWN) - IFO research institute's chief economist Gernot Nerb said the sharp downturn in the September business climate index is unlikely to continue. In a telephone interview with AFP, Nerb also said it is yet unclear if signs of recovery emerging before the Sept 11 terror attacks in the US have now been wiped out. Ifo earlier said the West German Ifo business climate index fell to 85.0 in September from 89.5 in August, and was down from 98.2 in September last year. Nerb said the fall to 85.0 is the lowest since November 1993. "(The attacks) have resulted in September's new business and demand to fall significantly than earlier estimated," he said. "It cannot be determined as yet whether this trend will continue in the coming months," he said. He said before Sept 11, "there was some recovery or stabilising trend or the first signs of it". "But the attacks have wiped out in a shocking way this development," he added. He said the extent of decline in the September index "will probably not continue". "But one cannot yet see if the Sept 11 has wiped out" the new trend emerging before the attacks.

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