In September, the German IFO business climate indicator fell less than expected. The headline index dropped from 108.7 to 107.5, while the consensus was looking for a decline to 106.5. The details show that sentiment among the current assessment (117.9 from 118.1) weakened marginally, while the expectations component dropped more significantly (98 from 100). Sector details show that weakness was based in the manufacturing (10.6 from 15.5) and construction (-9.9 from -6.5) sector, while retail (2.9 from 1.5) and wholesale (13.1 from 7.1) trade picked up in September. An IFO economist added that firms are sceptical about the future, but does not see a recession yet. The limited decline in current assessment index is encouraging as its suggests that firms are still in good shape, but the outlook is extremely uncertain. Growth has slowed significantly in the previous months and risks on a new recession have increased.