Germany Ifo Business Climate dropped slightly to 92.7 in October, down from 93.2, matched expectations. That’s the first decline after five consecutive rises. Current Assessment rose to 90.3, up from 89.2, beat expectation of 89.7. Expectations Index dropped to 95.0, down form 97.4, missed expectation of 96.0.
Ifo President Clemens Fuest said: “Companies are considerably more skeptical regarding developments over the coming months. In contrast, they gave a slightly more positive assessment of their current situation than last month. In view of rising infection numbers, German business is becoming increasingly worried.”
Looking at some details, manufacturing rose from -.5 to 1.6. That’s the first positive reading since June 2019. Services dropped from 6.9 to 3.9. Trade dropped from 0.3 to -0.1. Construction also dropped from 3.3 to 0.8.
