Germany’s Ifo Business Climate fell from 87.3 to 86.4 in December, below expectation of 87.8. Current Assessment index fell from 89.4 to 88.5, below expectation of 89.5. Expectations index fell from 85.2 to 84.3, below expectation of 85.8.
By sector, manufacturing fell from -13.8 to -17.2. Services rose from -2.5 to -1.7. Trade fell from -22.2 to -26.6. Construction fell from -29.5 to -33.1.
The Ifo Institute’s statement encapsulates the current sentiment, noting that “companies were less satisfied with their current business” and expressing a more skeptical view of the first half of 2024. The acknowledgment that “the German economy remains weak as the year draws to a close” is telling of the challenges facing Europe’s largest economy.
