The German ifo index for business climate fell in December, and it is especially the companies' expectations that are dragging it down. The assessment of the current situation, on the other hand, remains roughly unchanged.
The index is based on 9,000 responses from companies in industry, services, trade, and construction, where they assess both the current situation and expectations for the next six months.
The industry is experiencing the biggest downturn. Here, the outlook has become more pessimistic, and companies are also reporting fewer new orders and plans to cut production.
Restaurants are on the rise
In the service sector, the mood has also worsened. After a small lift earlier, the sector is back in negative territory, and companies are more subdued about both the current business and the coming months. Restaurants stand out as the clear exception with a more robust assessment.
Trade points in the same direction. Companies are less satisfied with the current situation, and expectations remain weak. In retail, a disappointing Christmas trade weighs on the assessment.
In construction, the business climate is largely stagnant, but at a low level. The current situation is assessed as worse, while expectations have become slightly less negative.
