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Ifo Index: Supply Bottlenecks Affect Companies - Sentiment in German Executive Boards continues to cloud over

2021-09-25T08:57:29.469Z


Germany's most important economic barometer falls for the third time in a row. Experts see this as an economic turning point.


Germany's most important economic barometer falls for the third time in a row.

Experts see this as an economic turning point.

Munich - The mood in the German economy deteriorated again in September.

The Ifo business climate, Germany's most important economic barometer, fell compared to the previous month by 0.8 points to 98.8 points, as the Ifo Institute announced on Friday in Munich.

It is the third decline in a row, which experts usually interpret as an economic turning point.

Analysts had expected a slightly smaller decline to 99.0 points.

The problems in the procurement of raw materials and intermediate products slowed the German economy, said Ifo President Clemens Fuest.

"The industry is experiencing a bottleneck recession," said the economist, referring to the delivery bottlenecks, which are largely a consequence of the corona pandemic.

The companies surveyed assessed both their current business situation and future prospects as less favorable.

Ifo: Industry is clouding the balance sheet

In September, the mood was mainly affected by industry. The business climate there deteriorated significantly. The order books are still well filled, but new orders have flattened out, emphasized the Ifo Institute. In contrast, the business climate among service providers has brightened. Some confidence has returned in the hospitality and tourism sectors. The mood also improved in the building sector, but remained almost unchanged in the retail sector.


Bank economists were not very optimistic about the figures.

A difficult fourth quarter is likely to come, said economist Jens-Oliver Niklasch from Landesbank Baden-Württemberg.

In his view, the delivery bottlenecks could even replace Corona as the main risk, although the Corona pandemic is by no means over.

"All in all, rather unpleasant news from Munich."

(Dpa)

Source: merkur

All news articles on 2021-09-25

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