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German business sentiment hits lowest level since 2020

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A downturn is visible across all four sectors of the German economy, Ifo said today, adding that pessimism had increased considerably looking ahead to the coming months.

The German economy is heading for recession, the Ifo institute said, reporting a stronger than forecast plunge in business morale across all sectors as Germany scrambles to avoid a gas shortage this winter.

"We're seeing a fat minus on all fronts," Ifo economist Klaus Wohlrabe said."Price expectations have risen again, with more than one in two companies announcing price increases." The September Ifo survey points"more than ever to a recession in the winter half of the year" as the extremely high cost of energy imports makes Europe's largest economy poorer, said Commerzbank economist Joerg Kraemer.

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