"German business sentiment fell more than expected in November, a survey showed Monday, the latest sign that industry is losing faith in the government's plans to revive the economy. The Ifo institute's confidence barometer dipped to 88.1 points from 88.4 points in October. Analysts surveyed by financial data firm FactSet had expected a reading of 88.3 this month. "Sentiment among companies in Germany has deteriorated," said Ifo president Clemens Fuest. "They have little faith that a recovery is coming anytime soon.""
"Expectations for the months ahead in the key manufacturing sector took a significant hit, according to the Ifo survey, which noted companies reported lower order books. There were also declines in morale in the trade construction sectors. However the picture in the service sector brightened, with morale improving once again. Despite Monday's disappointing reading, Dirk Schumacher, chief economist at German public lender KfW, noted that corporate expectations had trended up over the course of the year."
The Ifo institute's business confidence index fell to 88.1 in November from 88.4 in October, below analysts' expectation of 88.3. Companies reported deteriorating sentiment and little faith in a near-term recovery. Two years of recession driven by an industrial slump and weak demand preceded government promises of measures including increased public spending. Criticism has grown that those plans are proceeding too slowly due to political bickering, bureaucratic inertia and insufficient deep reforms. Manufacturing expectations were hit hard with lower order books, while trade and construction morale fell. Service-sector morale improved, and some economists expect growth to return by 2026, supported by fiscal measures.
Read at The Local Germany
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