The mood in German companies has deteriorated further in the face of the second wave of the corona pandemic.
The assessment is bleak, especially in the service sector.
Munich - The mood has deteriorated further in the boardrooms of German companies.
The
Ifo
business climate index for November fell from 92.5 points to 90.7 points, as the Munich research institute announced on Tuesday.
The mood had already sunk in October.
“Business uncertainty has increased.
The second
Corona
wave interrupted the recovery of the German economy, ”explained
Ifo
President
Clemens Fuest
.
For the
business climate
index, the institute surveys around 9,000 companies every month.
They are asked to assess their current business situation and their expectations for the next six months.
In April, the index fell to a historic low of 74.2 points due to the Corona crisis.
The recovery began in May, but stopped again in October.
Ifo business climate: Industry sees current situation as positive - "bright spot"
In November the outlook for the coming months in the manufacturing sector was “noticeably less optimistic” than in October.
On the other hand, the companies even assessed the current situation as “significantly better”, because incoming orders have increased, as the
Ifo
explained.
The industry is "the bright spot this month".
In the service sector, on the other hand, the index fell “noticeably”, in November it was “in negative territory for the first time since June”, as the
Ifo announced
.
In addition, significantly more companies were pessimistic about the coming months.
In the area of hotels and hospitality, the indicators even “downright crashed”.
# ifo business climate index falls - The ifo business climate index fell to 90.7 points in November, after 92.5 points in October.
The second wave of corona interrupted the recovery of the German economy.
pic.twitter.com/maGMVLYhtN
- ifo Institute (@ifo_Institut) November 24, 2020
Ifo business climate: In retail, expectations continue to cloud over
The business climate also deteriorated in retail.
Companies were less satisfied with their current situation and their expectations also clouded noticeably.
The retailers in particular reported that their businesses were “doing significantly less well”.
In the construction industry, the mood only eased slightly.
The construction companies rated their current situation in the
Ifo
survey as slightly better than in the previous month - their expectations, however, were a bit more pessimistic.
(AFP)
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