Business confidence in Germany fell slightly in October, remaining at a very low level, as companies expect a challenging winter due to the energy crisis.
The Ifo business-climate index fell to 84.3 points in October from a revised reading of 84.4 points in September, data from the Ifo Institute showed Tuesday. This is its lowest value since May 2020. Economists polled by The Wall Street Journal had expected the index to come in at 83.6. "The German economy is facing a difficult winter," Ifo President Clemens Fuest said. Companies were less satisfied with their current business, while their expectations improved, he said.
The index of the current situation fell to 94.1 in October from 94.5 in September, while the gauge assessing companies' expectations rose to 75.6 from 75.3. The Ifo index is based on a poll of about 9,000 companies in manufacturing, services, trade and construction. The decline in confidence is affecting mainly manufacturing and construction, the report shows.