November 29, 2022
Germany’s ifo Business Climate Index Rises (November 2022)
Sentiment in the German economy has improved. The ifo Business Climate Index rose to 86.3 points in November, up from 84.5 points in October. While companies were somewhat less satisfied with their current business, pessimism regarding the coming months reduced sharply. The recession could prove less severe than many had expected.
In manufacturing, the index rose significantly. Companies were considerably less pessimistic about the future. However, they assessed their current situation as worse. The number of new orders fell again. While uncertainty about future business development remains high, it did fall a little. But in energy-intensive industries, uncertainty rose further.
In the service sector, the business climate improved sharply. Service providers were less pessimistic about the coming months, but unhappier with their current business.
In trade, the index rose once again. Businesses assessed their current situation as slightly better. Their expectations were noticeably higher. Nevertheless, roughly one in two companies is currently still pessimistic about the next six months.
In construction, the business climate improved. Companies assessed their current situation as decidedly better.
Expectations recovered somewhat, but remained thoroughly pessimistic. The number of new orders dropped once more.
Source: ifo Institute of Germany
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