IFO: Business Climate Index falls for 5th consecutive month

The Institute for Economic Research (IFO) said on Monday that its Business Climate Index for Germany fell from 85.8 points last month to reach 85.7 points in September. President of the IFO Institute Clemens Fuest said that this drop for the fifth consecutive month was due to the fact that German companies were "pessimist" with their performance the coming months. In manufacturing, the companies' expectations "worsened minimally and remained pessimistic," whereas trading businesses were "less satisfied with their current situation." In construction, the Business Climate Index fell to its lowest value since January 2009 as companies once again assessed their current situation as "worse." "The outlook for the months ahead remains extremely pessimistic," Fuest stressed. Last month, data from the German Federal Statistical Office showed the stability of Germany's economy, the largest in Europe, in Q2 2023, after contracting slightly in Q1 of the same year. The IFO Business Climate is based on about 9,000 mo nthly responses from businesses in manufacturing, the service sector, trade and construction. Companies are asked to give their assessments of the current business situation and their expectations for the next six months. Source: Kuwait News Agency