Ifo index rises slightly
The mood in the executive suites of the German economy brightened again in November. The Ifo Business Climate rose by 0.4 points on the previous month to 87.3 points, according to the Munich-based Ifo Institute's survey of around 9,000 managers. This is the third increase in a row.
Experts surveyed by Reuters had expected 87.5 points. Companies assessed their current business situation slightly better. Pessimism regarding expectations for the coming months also decreased: "The German economy is stabilizing at a low level," said Ifo President Clemens Fuest.
The German economy did slow down its downward slide somewhat in November, according to the Purchasing Managers' Index published by financial services provider S&P Global. Nevertheless, there is a threat of recession following the weak performance in the third quarter. Gross domestic product (GDP) fell by 0.1 percent in the summer.
The economic outlook is not very rosy: the EU Commission forecasts that Germany will be the only major economy in the eurozone to shrink this year, with GDP falling by 0.3%. Next year, GDP is then expected to grow by 0.8% - which would put Germany, together with Finland, at the bottom of the eurozone in this respect in 2024.
The third consecutive increase in the Ifo Business Climate brings a glimmer of hope, but the threat of recession lingers due to the weak performance in the third quarter. The Consequence of the slowdown in GDP growth, as seen in the third month, is reflected in the EU Commission's forecast of a contracting German economy this year.
Source: www.ntv.de
