Germany's business climate continues to deteriorate

ISTANBUL

Germany's business climate index declined in September, showing ongoing deterioration in the business sentiment, the Berlin-based ifo Institute revealed on Tuesday.

"The ifo Business Climate Index fell in September to 85.4 points, from 86.6 points in August, the fourth decline in a row," a press release read.

Firms were particularly less satisfied with the current business situation, the outlook for the coming months continues to decline, and the German economy is coming under ever-increasing pressure, the institute said.

It stated that on the manufacturing side, the index fell to its lowest level since mid-2020, noting: "The companies assessed their current situation to be significantly poorer. Expectations are also significantly more pessimistic. The lack of orders has intensified. The core sectors of Germany industry are struggling."

In the service sector, the business climate has also decreased; the firms were significantly less satisfied with the current situation, while expectations were somewhat less skeptical.

"Sentiment in hospitality and tourism improved," it added.

In trade, the index has decreased, particularly the outlook for the coming months was again marked by increased skepticism.

"Traders also assessed their current situation to be slightly poorer," it noted.

It said: "In construction, the index climbed due to a decline in pessimistic expectations. On the other hand, the companies were somewhat less satisfied by the current business situation."