German business confidence deteriorates in November - Ifo
By Michele Maatouk
Date: Wednesday 24 Nov 2021
(Sharecast News) - German business sentiment deteriorated in November amid supply bottlenecks and rising Covid cases, according to a survey released on Wednesday by the Ifo Institute.
The business climate index fell to 96.5 from 97.7 in October, coming in just a touch below expectations for a reading of 96.6.
The current situation index dipped to 99.0 in November from 100.2 the month before, while the expectations index declined to 94.2 from 95.4.
The manufacturing gauge printed at 16.5, down from 17.5, while the services sector index came in at 11.5 from 16.6 in October. The index for trade was 2.6 in November versus 3.7 the month before, while the construction gauge slipped to 12.0 from 12.8.
Ifo President Clemens Fuest said: "Companies were less satisfied with their current business situation, and expectations became more pessimistic. Supply bottlenecks and the fourth wave of the coronavirus are challenging German companies."
Melanie Debono, senior Europe economist at Pantheon Macroeconomics, said: "The fifth monthly fall in Germany's IFO BCI, comes in contrast to the rise in the PMI, and suggests that the economy continued to lose momentum in the middle of Q4.
"Given the return of Covid restrictions - which are likely to be tightened further soon - the index is all but certain to fall again in December. Our forecast for German GDP growth of just 0.7% quarter-on-quarter in Q4 is looking increasingly like a ceiling."
Special promo:
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange
Market.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN