German Business Climate Sinks to Six-Month Low

Source: IFO

German business climate fell to a six-month low in October, dragged by the ongoing supply bottlenecks that continue to hit production. EWG is down 0.21%.

• The Business Climate Index fell to 97.7, down from 98.9 in September but higher than the 92.2 recorded the same month last year.
• The latest reading is the lowest in six months since the index stood at 96.5 in April 2021.
• Firms attributed the decline to the supply problems, along with the slowdown in capacity utilization.
• The Situation Index stood at 100.1, the lowest in four months since June’s 100.0.
• Expectations also slipped, with the index down to an eight-month low of 95.4, following the 97.4 in September and 94.5 a year ago.
• Supply bottlenecks weighed down capacity utilization by 2.1 percentage points to 84.7%.