Financial News: German Ifo Business Confidence At 8-Month Low

German Ifo Business Confidence At 8-Month Low

09/24/2024 - 06:19:00 (RTTNews)

(RTTNews) - German business sentiment continued to weaken to hit its lowest level in eight months in September, suggesting that the economy is slipping into a recession, survey results from the ifo Institute revealed Tuesday.

The business confidence index fell more-than-expected to 85.4 in September from 86.6 in the previous month. The score was seen at 86.1.

The indicator dropped for the fourth straight month to hit the lowest score since January.

"The German economy is coming under ever-increasing pressure," Ifo Institute President Clemens Fuest said.

Firms were particularly less satisfied with their current situation and the outlook for coming months continued to decline.

The current situation index posted 84.4, down from 86.4 a month ago and well below forecast of 86.1. The expectations indicator declined to 86.3, as expected, from 86.8 in August.

The business climate index in manufacturing fell to its lowest level since June 2020. Companies assessed their current situation to be significantly poorer. In addition, expectations became more pessimistic.

The lack of orders has intensified and the core sectors of industry are struggling, the survey showed.

The business climate in services also declined in September. Companies were significantly less satisfied with the current situation. On the other hand, expectations were somewhat less skeptical.

In trade, business confidence weakened further. In particular, the outlook for the coming months was again marked by increased skepticism. Traders also assessed their current situation to be slightly poorer.

By contrast, business confidence in construction improved due to a decline in pessimistic expectations. Companies were somewhat less satisfied by the current business situation.

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