Economy Business climate in Germany deteriorates for the fourth month in a row

The mood in the German economy deteriorated once again in September. The Ifo business climate fell by 1.2 points to 85.4 points, as the Ifo Institute announced on Tuesday.

This is the fourth consecutive decline in Germany's most important economic barometer and the lowest level since January. Economists had expected a further dampening of sentiment, but on average had assumed a weaker dip to 86 points.

"The German economy is coming under increasing pressure," commented Ifo President Clemens Fuest. Companies were less satisfied with current business in particular. In the manufacturing sector, sentiment had fallen to its lowest level since summer 2020, said Fuest.

The around 9,000 companies surveyed by the Ifo Institute again rated the outlook for their future business as worse overall. The assessment of the current situation was also weaker than in the previous month.

SDA