German business sentiment deteriorated again in October as supply chain constraints overshadowed the short-term outlook.
Source: ifo Institute
DAX up +0.21%, EUR USD down -0.19%
The Ifo business-climate index dropped to 97.7 points in October from 98.9 points in September. This is the 4th straight decline of the indicator following a peak of 101.8 in June.
Clemens Fuest, Ifo Institute’s president stated that ‘Sand in the wheels of the German economy is slowing down the recovery,’ referencing supply problems.
In October, companies were less optimistic about the current business and they were also skeptical about the upcoming months.
The business expectations dropped to 95.4 in October from 97.4, the previous month. The measurement that evaluates companies’ current business situation also fell to 100.1 from 100.4 in September.
In manufacturing, the business climate measurement dropped to 17.2 from 20.0 in the past months. Supply problems drove capacity utilization down 2.1% to 84.7 %.