Press release -

ifo Business Climate Index Rises (November 2022)

Sentiment in the German economy has improved. The ifo Business Climate Index rose to 86.3 points in November, up from 84.5 points  in October. While companies were somewhat less satisfied with their current business, pessimism regarding the coming months reduced sharply. The recession could prove less severe than many had expected.

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In manufacturing, the index rose significantly. Companies were considerably less pessimistic about the future. However, they assessed their current situation as worse. The number of new orders fell again. While uncertainty about future business development remains high, it did fall a little. But in energy-intensive industries, uncertainty rose further.

In the service sector, the business climate improved sharply. Service providers were less pessimistic about the coming months, but unhappier with their current business.

In trade, the index rose once again. Businesses assessed their current situation as slightly better. Their expectations were noticeably higher. Nevertheless, roughly one in two companies is currently still pessimistic about the next six months.
In construction, the business climate improved. Companies assessed their current situation as decidedly better.

Expectations recovered somewhat, but remained thoroughly pessimistic. The number of new orders dropped once more.

Clemens Fuest
President ifo Institute

Survey

ifo Business Climate Index for Germany — 24 November 2022

Sentiment in the German economy has improved. The ifo Business Climate Index rose to 86.3 points in November, up from 84.5 points  in October. While companies were somewhat less satisfied with their current business, pessimism regarding the coming months reduced sharply. The recession could prove less severe than many had expected.

Contact
Dr. Klaus Wohlrabe

Dr. Klaus Wohlrabe

Deputy Director of the ifo Center for Macroeconomics and Surveys and Head of Surveys
Tel
+49(0)89/9224-1229
Fax
+49(0)89/9224-1463
Mail
Harald Schultz

Harald Schultz

Press Officer
Tel
+49(0)89/9224-1218
Fax
+49(0)89/907795-1218
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