German business climate improves in November, says Ifo Institute
The German Ifo Business Climate Index for industry and trade increased in November to 104.7 points compared to 103.2 points in October. According to the prestigious Munich-based Ifo Institute, Germany’s business climate had deteriorated for the previous six consecutive months.
The authors informed that assessments for the current business situation are better than in October, while expectations for the coming months are also more optimistic.
According to the report, Germany’s economic downturn has halted, at least for the moment.
The business climate indicator improved after six successive declines. Manufacturers said in November that they were less pessimistic about their business outlook. They expect exports to drive growth.
There was a market improvement in the business climate in wholesaling. Wholesalers said their current business situation was considerably better in November, while their expectations for the near-term future improved marginally.
The business climate in the retail sector also improved. The balance between positive and negative assessments regarding the current business situation was more equal in November. Retailers expressed less pessimism regarding future business developments.
Source: Ifo Institute.
The overall favorable current business situation in construction deteriorated only slightly. Business expectations improved markedly, as it usually does this time of the year.
The Ifo Business Climate Index is based on approximately seven thousand monthly survey responses from companies in retailing, wholesaling, construction and manufacturing.
Markit Germany Business Outlook
Markit Economics, in a different survey published today, says German service and manufacturing sector companies remained positive in October regarding the direction of their business activity over the coming year. However, the degree of optimism has declined in both sectors.
Lower optimism was also reported regarding business revenues, profits and new orders.
German companies said they have moderated their hiring intentions since the previous survey period (June).