Home breadcru News breadcru Announcement breadcru German business sentiment hits lowest since May 2020: ifo

German business sentiment hits lowest since May 2020: ifo

18 Dec '24
1 min read
 German business sentiment hits lowest since May 2020: ifo
Pic: Adobe Stock

Insights

  • Germany's ifo Business Climate Index fell to 84.7 in December, the lowest since May 2020, as companies' expectations worsened.
  • Manufacturing saw notable declines, with reduced satisfaction and gloomy forecasts.
  • The trade sector also failed to maintain its recent positive trend, driven by dissatisfaction in both wholesale and retail.
Sentiment among businesses in Germany has declined further, as the ifo Business Climate Index dropped to 84.7 points in December from 85.6 points in November, marking the lowest level since May 2020. This downturn reflects more pessimistic expectations for the future, though companies assessed their current situation more favourably.

The manufacturing sector was hit hardest, with the index falling sharply as companies reported decreased satisfaction with current business conditions. The outlook also worsened, with companies expecting further deterioration in the order situation and planning production cuts.

In the trade sector, the index failed to sustain its recent upward momentum. Both wholesale and retail sectors expressed growing dissatisfaction with current business, pessimism about future conditions also increased.

ALCHEMPro News Desk (HU)

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