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German economy struggles; Business Climate Index falls to 85.7

27 Nov '24

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German economy struggles; Business Climate Index falls to 85.7

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Germany's ifo Business Climate Index fell to 85.7 in November from 86.5 in October, reflecting a pessimistic outlook.
Manufacturing saw worsening sentiment, with challenges in orders and a tough current situation.
Trade improved slightly, with better assessments of the status quo and less pessimistic expectations.
Overall, sentiment remains far from positive, said ifo.

Germany’s ifo Business Climate Index dipped to 85.7 points in November, down from 86.5 points in October, reflecting a more pessimistic outlook among businesses in the country. The primary reason for the decline is the worse assessment of the current situation, slightly making the expectations low.

In Manufacturing, the business climate worsened, despite companies being skeptical about the coming months. By contrast, they were slightly more satisfied about the status quo. “The current situation is frequently described as difficult and orders were down”, said ifo in a press release.

In Trade, the index went up again as companies assessed their current situation as better. In addition, expectations were less pessimistic, both for retail and wholesale. However, sentiment among companies is still a long way off from being positive, added the release.

The Ifo Institute for Economic Research is a Munich-based research institution. It is one of Germany's largest economic think-tanks, that analyses economic policy and publishes monthly index. The ifo Business Climate is based on approximately 9,000 monthly responses from businesses in manufacturing, the service sector, trade, and construction.

Fibre2Fashion News Desk (SG)

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