The Ifo Institute’s business climate index fell from 86.6 to 85.4 points in September. This is the fourth decline in a row. The index is based on around 9,000 monthly reports from companies assessing their current business situation and expectations for the next six months. The index value 100 is defined as the average value for 2015.
In the manufacturing sector, the index is at its lowest level since June 2020 at 83.7. The lack of orders has worsened. The core sectors of German industry are in difficulties. In the services sector, the current situation is assessed more negatively, but the outlook was less skeptical. Conversely, trading companies assessed the outlook much more negatively. In the construction industry, the index rose. This was due to less pessimistic expectations. Companies, on the other hand, were somewhat more dissatisfied with current business.
