Germany’s business confidence level grew first time in nine months, as companies’ concern about rising trade tensions started fading, Bloomberg reports.

Gauge closely watched by Ifo institute grew from 101,7 in July to 103,8 in August. This is the first growth since index started falling from record high level last year. It exceeded expectations of economists. Expectations index is also rising.

German economy showed good results in the second quarter due to increase in domestic demand that overlapped problems with trade. Slowdown of Chinese economy, emerging markets tension as well as protectionism are major risk for future development.

According to estimates of Ifo, German economy will be growing with 0,5% pace in third quarter.