ifo Business Climate Index Falls across the Board (September 2022)
In manufacturing, the index fell tangibly. Companies were less satisfied with their current business. They are definitely worried about the coming six months. The last time expectations were this pessimistic was in April 2020. The mood has soured across almost all industries. Order books shrank further.
In the service sector, the Business Climate Index took a nosedive. Assessments of the current situation were significantly worse. Companies are also expecting a further marked deterioration in the coming months. The hospitality industry is bracing for particularly tough times.
In trade, the business climate worsened again. For the first time since February 2021, the business situation is back in negative territory. Expectations also darkened further.
The index in construction weakened noticeably. Businesses were less satisfied with their current situation. Expectations were more pessimistic than in the previous month.
Clemens Fuest
President of the ifo Institute
Survey
ifo Business Climate Index Falls across the Board (September 2022)
Sentiment in the German economy has deteriorated considerably. The ifo Business Climate Index fell to 84.3 points in September, down from 88.6 points (seasonally adjusted) in August. This is its lowest value since May 2020. The decline is affecting all four sectors of the economy. Companies assessed their current business as clearly worse. Pessimism regarding the coming months has grown decidedly; in retail, expectations have fallen to a record low. The German economy is slipping into recession.
