ifo Business Climate Index Falls Slightly (September 2023)
Sentiment in the German economy remains bleak. The ifo Business Climate Index fell to 85.7 points in September, down from 85.8 points (seasonally adjusted) in August. Once again, companies were less satisfied with their current business situation. However, their pessimism regarding the coming months dissipated slightly. The German economy is treading water.
In manufacturing, the Business Climate Index rose a little. Companies were somewhat more satisfied with their current business. However, their expectations worsened minimally and remained pessimistic. Order books shrank further.
In the service sector, the business climate suffered its sixth consecutive fall. This was due to a notable deterioration in the current business situation. Sales were weaker than in the previous months. Expectations improved slightly but are still marked by skepticism.
In trade, the index rose. This was due to less pessimistic expectations. However, trading businesses were less satisfied with their current situation.
In construction, the Business Climate Index fell to its lowest value since January 2009. Companies once again assessed their current situation as worse. The outlook for the months ahead remains thoroughly pessimistic.
Clemens Fuest
President of the ifo Institute
Survey
ifo Business Climate Index Falls Slightly (September 2023)
Sentiment in the German economy remains bleak. The ifo Business Climate Index fell to 85.7 points in September, down from 85.8 points (seasonally adjusted) in August. Once again, companies were less satisfied with their current business situation. However, their pessimism regarding the coming months dissipated slightly. The German economy is treading water.
