Germany's business climate index falls for 6th consecutive month

By Ovunc Kutlu

ANKARA (AA) - The Business Climate Index in Germany dropped for the sixth consecutive month in Germany, according to Munich-based research institution Ifo Institute for Economic Research on Friday.

The Ifo Business Climate Index declined to 94.7 points in December, from 96.6 points in November, the institution said in a statement.

"Companies assessed their current business situation as less positive. Pessimism regarding the first half of 2022 also increased," it said.

The German firms' assessments of the current situation have worsened due to supply bottlenecks for intermediate products and raw materials, Ifo said.

While business expectations turned pessimistic, especially in tourism and hospitality, the expectations indicator fell to its lowest level since January, it added.

The Ifo Business Climate is based on approximately 9,000 monthly responses from businesses in manufacturing, the service sector, trade, and construction.