No Trump effect yet on German business sentiment, says Ifo economist

[January 25, 2017]  MUNICH (Reuters) - There has been no effect so far on German business sentiment from the first few days in office of U.S. President Donald Trump, Ifo economist Klaus Wohlrabe said on Wednesday.

A bull figure is pictured in front of the German share price index DAX board at the German stock exchange in Frankfurt January 25, 2013. REUTERS/Lisi Niesner

He said German firms were waiting for actions from Trump, not just words and nothing has yet been decided on protectionist measures.

"There is no Trump effect seen in this numbers as export expectations have risen, even in the car industry," said Wohlrabe.

Trump has warned German car companies such as BMW <BMWG.DE> that he plans to impose a border tax of 35 percent on vehicles imported to the U.S. market.

Ifo was sticking to its forecast that the German economy would grow by 1.5 percent this year despite an unexpected fall in the business morale index in January.

(Reporting by Joern Poltz; Writing by Madeline Chambers; Editing by Joseph Nasr)

[© 2017 Thomson Reuters. All rights reserved.]

Copyright 2017 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.