Germany’s November ifo Business Climate Index Falls to 88.1 as Economic Outlook Deteriorates

(New York=Yonhap Infomax) Jin Woo Choi – Business sentiment among German companies weakened in November.

According to the ifo Institute for Economic Research on the 24th (local time), Germany’s ifo Business Climate Index for November fell by 0.3 points from the previous month to 88.1.

This figure came in below market expectations of 88.5.

Breaking down the data, the Expectations Index—which reflects companies’ outlook for the next six months—declined by 1.0 point to 90.6 from the previous month.

In contrast, the Current Assessment Index, which gauges companies’ evaluation of present business conditions, edged up by 0.3 points to 85.6.

The ifo Business Climate Index is based on a survey of 9,000 companies across Germany’s manufacturing, services, trade, and construction sectors.

Clemens Fuest, President of the ifo Institute, stated, “The main reason for the decline is a more pessimistic economic outlook,” adding, “Assessments of current business conditions have improved slightly.”

He further explained, “The manufacturing index fell, with expectations worsening significantly. Companies are approaching the coming months with great caution. Many reported a decrease in order volumes, while business conditions improved only marginally.”

On the other hand, “Sentiment in the services sector improved somewhat. While transport and logistics contracted, the tourism sector showed a clear improvement in sentiment,” Fuest noted.

jwchoi@yna.co.kr

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