Economics
German Businesses Lose Faith in Recovery as Virus Spreads
- Ifo business climate index fell to 92.7 in Oct. vs est. 93.0
- Mood particularly gloomy in services as new restrictions loom
Germany’s services sector is shrinking again.
Photographer: Michaela Handrek-Rehle/BloombergThis article is for subscribers only.
German companies are turning pessimistic on the recovery, potentially marking the beginning of a major economic setback after half a year of gradual improvements.
The Ifo Institute’s business climate index dropped for the first time in six months, just as coronavirus cases in the country reached new records. The reading of 92.7 in October was lower than the median forecast of economists in a Bloomberg survey, and compares to 93.2 the previous month. A gauge of expectations also deteriorated.