ZURICH (MaceNews) – Business sentiment in Germany fell in November as concerns over a fourth Covid wave and continued supply chain bottlenecks dampened both current conditions and expectations according to the latest report from the Munich-based Ifo Institute.
The Business Climate Index median fell to 96.5 in November, slightly below the median of 96.7 in and Econoday survey of economists’ forecasts. In October, the index stood at 97.7 and was unrevised.
“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”, says Ifo President Clemens Fuest.
Services saw sentiment deteriorate “noticeably” with a fourth Corona wave causing expectations to plunge in the tourism and hospitality sectors in particular.
The retail segment of the economy continues to suffer due to supply problems and expect prices to increase in the coming months, Fuest said.
Expectations registered the largest decline, falling to 94.2 in November from and unrevised 95.4 in October. The decline was unexpected, with the median Econoday forecast calling for a 96.4 result.
Current Conditions meanwhile fell to 99.0 in November from a revised 100.2 (100.1) in October and were slightly below the Econoday median of 99.4.
The December Business Climate Index is scheduled to be released December 17 at 10:00am CET.
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