The confidence of German businessmen falls again in October and hits its lowest since 2020, according to Ifo

MADRID, 25 Oct.

The confidence of German businessmen falls again in October and hits its lowest since 2020, according to Ifo

MADRID, 25 Oct. (EUROPA PRESS) -

The confidence of German businessmen has fallen again in October, as reflected in the index produced by the Munich Institute for Economic Research (Ifo), which has stood at 84.3 points from 84.4 points last month, reaching its lowest value since May 2020.

Ifo President Clemens Fuest acknowledged that confidence in the German economy "remains gloomy" as companies were less satisfied with their current business, although expectations improved. "The German economy is facing a difficult winter," he said.

Specifically, the evaluation of German companies for the current situation worsened again in October, standing at 94.1 points from 94.5 the previous month, the lowest since March 2021, while expectations rose to 75, 6 integers, compared to 75.3 the previous month.

By sector, in manufacturing, the index fell again due to more pessimistic expectations from companies, although their assessment of the current situation has improved in October.

In the case of the services sector, after the sharp drop in the previous month, the business climate improved slightly, with less pessimism for the coming months, but somewhat less optimism about the present.

In trade, the index rose on slightly better assessments of the current situation. However, expectations remain markedly gloomy, especially in retail.

Likewise, the construction index fell again in October as a result of the worst assessment of the current situation, which has fallen to its lowest level since January 2016, while expectations continued to deteriorate.

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