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ifo business climate index rises again in October - hope for improvement in the German economy
According to a report from www.tagesschau.de, the ifo business climate index rose again in October after five declines. German companies are assessing their prospects better again, but the situation in many sectors remains tense. Silver lining on the horizon After a long dry spell, the ifo business climate index rose in October. The mood in the German economy has improved; both the assessments of the current business situation and the expectations for the coming months have become more positive. The index rose from 85.8 points in September to 86.9 points in October. Experts had only expected an increase to 86.0 points. However, according to the ifo Institute, not all...
ifo business climate index rises again in October - hope for improvement in the German economy
Silver lining on the horizon
After a long dry spell, the ifo business climate index rose in October. The mood in the German economy has improved; both the assessments of the current business situation and the expectations for the coming months have become more positive. The index rose from 85.8 points in September to 86.9 points in October. Experts had only expected an increase to 86.0 points. However, according to the Ifo Institute, not all economic sectors are equally optimistic. Expectations have increased in the manufacturing sector, but the current situation is assessed as worse. The order situation in industry is still considered difficult.
Service providers more optimistic, construction remains difficult
In the service sector, the business climate has improved significantly and ongoing business is ensuring satisfaction among companies. In retail, however, assessments of the current situation have worsened and traders are more pessimistic about the coming months. The current business situation in construction is also rated slightly worse, while the outlook for the coming months has improved slightly, but still remains pessimistic.
Experts are optimistic
In their first statements on the current ifo index, the experts are cautiously optimistic. They see hope for a better future in the return of consumers' purchasing power and in the reduction of the braking effects of monetary policy. However, it is also noted that the German economy has been fluctuating between meager growth and recession for about two years.
Technical recession possible
According to expert opinions, the German economy will not go beyond stagnation in the second half of 2023. It is assumed that the gross domestic product (GDP) fell in the past summer quarter and that Germany could therefore fall into a technical recession again. Most experts do not expect noticeable growth until next year.
Read the source article at www.tagesschau.de