The Ifo institute said on Monday that its business climate index fell to 97.7 from an upwardly revised 98.9 in September. This was the lowest reading since April and undershot the 97.9 consensus forecast in a Reuters poll.
"Supply problems are giving businesses headaches," Ifo President Clemens Fuest said, adding that capacity utilisation in manufacturing was falling.Half of all industrial companies are planning to hike prices due to the continuing supply problems, which is a record high in the survey, Ifo economist Klaus Wohlrabe said.
In addition to the supply problems, the spike in gas and energy prices is complicating the recovery, Gitzel added.
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