The manufacturing sector, in particular, has felt a notable impact. The business climate index in this sector fell significantly, with companies reporting a worse assessment of their current business conditions and a more pessimistic set of expectations for the future. Energy-intensive industries, in particular, are experiencing heightened difficulties, with a continued overall contraction in order books, as per the ifo Institute.
The trade sector also faced challenges, with the business climate taking a hit. Retailers indicated a markedly worse current situation and a gloomier outlook, underscored by a disappointing holiday trade this year.
A significant downturn was observed in the sentiment of the German export industry. The ifo export expectations dropped to minus 6.7 points in December from minus 4.1 points in November. Manufacturers of machinery and equipment are bracing for fewer orders from abroad. The chemical and metal industries, both energy-intensive sectors, are currently facing particularly severe challenges.
Despite the overall downward trend, some sectors show resilience with expectations of growth. The manufacturers of leather products are among those expecting an increase in export sales.
ALCHEMPro News Desk (DP)
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