Manufacturing Drags Down German Business Confidence

29 October 2002

Germany’s businessmen are increasingly concerned about the country’s economy, according to figures released on Monday by the Ifo research institute.

Ifo’s closely watched business sentiment index dropped in October to a nine-month low of 87.7, down from 88.2 the month before, while the business expectations component fell from 99.3 to 97.9.

The index’s fifth monthly fall in a row points to “a very weak recovery, close to stagnation,” according to Ifo economist Gernot Nerb.

However, such declines reflect continued weakness in the manufacturing sector, Nerb continued, whereas construction, retail and wholesale businesses remain upbeat.

Data sourced from: BBC Online Business News (UK); additional content by WARC staff