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Pessimistic mood in companies
The mood of top managers in Germany clouded over for the fifth month in a row in November. The Ifo business climate index fell to 96.5 points from 97.7 points in October, as the Munich Ifo Institute announced on Wednesday. The institute surveyed around 9,000 executives about this. Ifo President Clemens Fuest on Wednesday: The bosses assessed the situation of their companies more skeptically than before and were also looking more pessimistically ahead. In industry, the mood clouded over, as the companies rated their ongoing business noticeably less well. On the other hand, expectations brightened somewhat, which, according to Ifo, was primarily due to the development of the automotive industry. “Supply bottlenecks for preliminary products and raw materials are not going to let the industry go,” emphasized Fuest. According to the institute, a clear majority of companies are also planning to increase prices. The business climate also deteriorated noticeably in the service sector. For the current quarter, economists expect a slower economic recovery and some experts even expect the economy to shrink. Delivery bottlenecks, increasing corona infections and higher energy prices are seen as the main brake on the economy.
According to the Ifo index, the economic barometer is falling for the fifth month in a row. Delivery bottlenecks, energy prices and the number of corona cases are seen as the greatest brake.