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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