Germany’s business sentiment bounces back in October

By Emir Yildirim

ISTANBUL (AA) - Germany’s business sentiment bounced back in October after four consecutive decreases, according to the ifo Institute on Friday.

The ifo Institute’s Business Climate Index rose from 85.4 points in September to 86.5 points in October.

The institute said that the increase following the downward trend in previous months in the business sentiment of the manufacturing sector was due to less pessimistic expectations, as the index increased from minus 21.4 to minus 20.6, though the current business situation was assessed to be worse.

The main problem with the manufacturing sector is cited as the lack of orders, while the manufacturing sector’s capacity utilization fell to 76.5%, down 1.2 percentage points, and significantly below the long-term average of 83.4%.

As for the services sector, the business sentiment grew from minus 3.5 to 0.1, as companies in logistics, tourism, and IT showed more satisfaction while expectations rose.

The business sentiment for the trade sector slightly increased from minus 29.8 to minus 29.3 with expectations slightly improving, though companies showed less satisfaction.

Meanwhile, the construction business sentiment fell compared to the others, from minus 25.3 to minus 25.7, “due to more pessimistic expectations by the companies—They did, however, assess the current business situation as somewhat better,” said ifo.