For four months in a row, a deterioration in the business climate has been recorded in Germany. The corresponding index, calculated by the ifo Institute for Economic Research and considered the most important economic barometer in Germany, which was 98.9 points in September, fell to 97.7 points in October, the Munich Institute said on Monday, October 25.
Ifo CEO Clemens Fuest explained this situation, in particular, the supply problems faced by German companies. As a result, according to him, the workload of production capacities in the industry is falling – it is only 84.7 percent.
The ifo index also deteriorated slightly in the services sector and to a large extent in trade, where businesses also suffer from supply difficulties.
In the construction industry, however, business sentiment has improved significantly again. This concerns both the assessment of the current situation by the companies and the development prospects – the builders’ expectations index has grown for the sixth time in a row.
To determine the business climate index, Ifo polls about 9,000 companies every month. They are asked to assess the current business situation and their expectations for the next six months.
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