German Ifo Business Confidence Deteriorates In November
November 24 2021 - 12:42AM
RTTF2
Germany's business sentiment weakened in November as the fourth
wave of pandemic caused expectations to fall especially in the
service sector, survey results from the ifo Institute showed on
Wednesday.
The business confidence index fell to 96.5 in November from 97.7
in October. The reading was forecast to drop to 96.6.
Companies were less satisfied with their current business
situation, and expectations became more pessimistic.
The current conditions indicator came in at 99.0, in line with
expectations, and down from 100.2 a month ago. At the same time,
the business expectations index posted 94.2 in November. The score
was expected to fall to 95.0 from October's 95.4.
Supply bottlenecks and the fourth wave of the coronavirus are
challenging German companies, Clemens Fuest, ifo President,
said.
The survey suggested that the German economy was struggling even
before the recent tightening of Covid restrictions, Andrew
Kenningham, an economist at Capital Economics, said. Things will be
much worse in December as coronavirus restrictions are tightened
further.
In the manufacturing sector, the ifo business climate index fell
as companies assessed their current business as considerably worse.
By contrast, their expectations brightened somewhat, especially due
to developments in the automotive industry.
According to ifo, supply bottlenecks in intermediate products
and raw materials still have a grip on the manufacturing sector and
a majority of companies plan to raise prices.
Sentiment in the service sector deteriorated noticeably in
November. Skepticism grew substantially, especially as regards
expectations. Service providers were less satisfied with their
current situation as well.
The business climate index weakened in trade reflecting greater
pessimism in companies' expectations, although they rated their
current situation as somewhat improved. The mood in retail
continues to suffer due to supply problems and prices are more
likely to increase over the coming months, the survey showed.
The business climate in the construction industry worsened
slightly in November. Following the continuous upswing of recent
months, expectations have turned more pessimistic. Companies judged
their current situation to be somewhat better.
Euro vs Yen (FX:EURJPY)
Forex Chart
From Aug 2024 to Sep 2024
Euro vs Yen (FX:EURJPY)
Forex Chart
From Sep 2023 to Sep 2024