Pessimism within the German manufacturing sector has hit its lowest level since June 2020, a report from a major economic research institution has found.
Data gathered by the Ifo Institute for Economic Research found that feelings within Germany’s private sector as a whole were on the decline as the country battled to deal with pressures relating to energy, as well as the increasing fragmentation of the global economy.
The Ifo Institute reported on September 24 that its Business Climate Index fell by over one point between August and September, marking the fourth consecutive decline in as many months.
Things were particularly dire among manufacturers, with a lack of orders meaning many businesses said they were now “struggling”.
“In manufacturing, the index fell to its lowest level since June 2020. The companies assessed their current situation to be significantly poorer,” the institute said in a press release seen by Brussels Signal.
“Expectations are also significantly more pessimistic. The lack of orders has intensified.”
Sentiments within the service and trade sectors were also said to be on the decline. The only area to see the index increase was construction due to a “decline in pessimistic expectations”.
The Ifo Institute warned that even businesses in that sector said they were “somewhat less satisfied by the current business situation” than they had previously been.
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