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MNI BRIEF: Ifo Business Climate Slips On Service Sentiment

(MNI) Frankfurt

German business sentiment is on the downturn, ifo reported Monday, as supply bottlenecks weigh on manufacturing and trade expectations, while service sector business expressed increased pessimism over future prospects.

The ifo Business Climate Index dropped from September's 98.9 points to 97.7 points in October, with manufacturing capacity utilization down 2.1% to 84.7%. By contrast, in construction the business climate continued to improve, with expectations ticking up for the sixth time in a row.

However, the Current Conditions index only slipped modestly, falling to 100.1, as respondents said although bottlenecks continued, they were no worse than previously.

MNI London Bureau | +44 20 3983 7894 | luke.heighton@marketnews.com
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MNI London Bureau | +44 20 3983 7894 | luke.heighton@marketnews.com
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