The German IFO business climate indicator extended its downtrend in September. The headline index fell for a fifth consecutive month to reach its lowest level since early 2010. The German IFO fell from 102.3 to 101.4, while the consensus was looking for a marginal improvement (to 102.5). The breakdown shows that weakness was based in both the current assessment (110.3 from 111.1) and expectations (93.2 from 94.2) sub-index. The sector breakdown on the contrary showed a further weakening in sentiment in the manufacturing sector (-4.2 from -1.3) and in construction (-10.1 from -7.0), while wholesale (0.0 from -2.1) and retail (-4.0 from -4.7) trade improved slightly. An IFO economist added that private consumption has not yet been hit by the crisis as consumption continues to be robust. The German economy continues to do well compared to the rest of Europe, but he warned that uncertainty has risen further and will continue to increase in the coming months. After the German PMI’s and ZEW, the IFO outcome is disappointing as the ESM approval by the Constitutional Court and ECB measures were unable to support business sentiment.