German business sentiment down in November

By Emir Yildirim

ISTANBUL (AA) – German business sentiment fell in November after rising in October, the country’s ifo Institute said on Monday.

The ifo Business Climate Index, which gauges sentiment among companies operating in the manufacturing, services, trade, and construction sectors, dropped to 85.7 points in November.

The figure eased from 86.5 points in October, which was the first increase after four consecutive declines.

The main cause of the decline was cited as a “worse assessment of the current situation,” as expectations declined while the German economy continues to struggle to grow.

The German manufacturing sector’s business sentiment fell to minus 21.9 in November from minus 20.6 in October as manufacturers reported a lack of orders and skepticism over the coming months.

The service sector’s business sentiment declined to minus 3.6 from 0.1 over the same period, a significant fall, as service firms reported pessimistic expectations.

The construction sector’s business sentiment plummeted to minus 28.5 in November from minus 25.7 in October due to less satisfaction of construction companies during the month and skeptical expectations.

Meanwhile, the business sentiment in trade rose to minus 26.6 from minus 29.4 over the same period, as companies operating in trade saw the current situation as better, and although with less pessimistic expectations, for both retail and wholesale, the business sentiment of trade companies remained in negative territory.