Economic growth was robust in the first half of the year and is expected to have remained on a solid track in the second half, even though recent indicators have sent mixed signals. Positive signs came in October’s rise in the composite PMI and still-high business confidence, which showed that the Volkswagen scandal did not hurt sentiment in the automotive industry. Industrial production and exports contracted significantly in August, though this was mainly due to weakening demand from China and other emerging markets. The strong influx of migrants is largely seen as supportive for the economy as it will boost consumption in the short term and offers the chance to address the looming economic challenges of an aging society in the longer term. While Economy Minister Sigmar Gabriel said in October that increased public spending for refugees will act as a stimulus package, the Finance Ministry expects that increased spending will lead to a fiscal deficit next year.