ifo Business Climate Index Falls (December 2023)
Sentiment in German business has clouded over. The ifo Business Climate Index fell to 86.4 points in December, down from 87.2 points (seasonally adjusted) in November. Companies were less satisfied with their current business. They were also more skeptical about the first half of 2024. As the year draws to a close, the German economy remains weak.
In manufacturing, the Business Climate Index fell noticeably. Companies assessed their current business situation as significantly worse. Their expectations also grew more pessimistic. Energy-intensive industries are having a particularly tough time. Order books continue to shrink overall.
In the service sector, the business climate improved slightly. Service providers were more satisfied with their current business. They also reported less skepticism in their outlook for the coming six months. In restaurants and catering, the business situation improved but expectations took a nosedive.
In trade, the business climate suffered a setback. Companies assessed their current situation as markedly worse. Their expectations also darkened. For retailers, holiday trade is disappointing this year.
In construction, the Business Climate Index fell to its lowest level since September 2005. Companies assessed their current situation as worse. Moreover, roughly one in two companies are expecting business to deteriorate further in the months ahead.
Clemens Fuest
Präsident des ifo Instituts
Survey
ifo Business Climate Index Falls (December 2023)
Sentiment in German business has clouded over. The ifo Business Climate Index fell to 86.4 points in December, down from 87.2 points (seasonally adjusted) in November. Companies were less satisfied with their current business. They were also more skeptical about the first half of 2024. As the year draws to a close, the German economy remains weak.
