ifo Business Climate Index Rises (November 2023)
Sentiment among German companies has improved slightly. The ifo Business Climate Index rose to 87.3 points in November, up from 86.9 points in October. This is its third consecutive increase. Companies assessed their current business situation as somewhat better. Expectations for the coming months were also less pessimistic. The German economy is stabilizing, albeit at a low level.
In manufacturing, the Business Climate Index rose markedly. Companies were more satisfied with their current business. Their skepticism regarding the months ahead also reduced noticeably, especially in many energy-intensive industries. Nonetheless, companies still reported a lack of new orders.
In the service sector, the business climate worsened a little. Service providers assessed their current situation as somewhat less good. They also adjusted their expectations slightly downward. However, tourism companies remain very satisfied, while sentiment in hospitality improved.
In trade, the index rose notably. The indicators for the current situation and for expectations both leaped higher. This is particularly evident in wholesale. In contrast, retailers have rather low expectations for their Christmas business.
In construction, the Business Climate Index rose. Companies assessed their current business as somewhat better. The same is true for their expectations. Despite this, sentiment in construction remains extraordinarily negative overall.
Clemens Fuest
President of the ifo Institute
Survey
ifo Business Climate Index Rises (November 2023)
Sentiment among German companies has improved slightly. The ifo Business Climate Index rose to 87.3 points in November, up from 86.9 points in October. This is its third consecutive increase. Companies assessed their current business situation as somewhat better. Expectations for the coming months were also less pessimistic. The German economy is stabilizing, albeit at a low level.
