Survey reveals Ukraine war has knocked German business confidence

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Fuest said in a statement that the business climate in the flagship manufacturing industries had never declined so sharply, with 'optimism giving way to clear pessimism' in the business outlook as well.

BERLIN - The business climate in Europe's top economy worsened in March, German survey data showed Friday, amid fears over soaring energy prices and deepening supply chain woes due to the Ukraine invasion.

"Companies in Germany are expecting hard times," Ifo president Clemens Fuest said, noting that the "historic" 13.3-point drop in the indicator surpassed even the 11.8-point fall at the start of the pandemic two years ago. Bottlenecks in supply of raw materials and components were already weighing heavily on Europe's largest economy, which draws much of its strength from the export-strong sector.

Jens-Oliver Niklasch, senior economist at LBBW bank, said the grim numbers came in broadly in line with forecasts.

 

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