Sentiment among businesses in Germany has declined further, as the ifo Business Climate Index dropped to 84.7 points in December from 85.6 points in November, marking the lowest level since May 2020. This downturn reflects more pessimistic expectations for the future, though companies assessed their current situation more favourably.
The manufacturing sector was hit hardest, with the index falling sharply as companies reported decreased satisfaction with current business conditions. The outlook also worsened, with companies expecting further deterioration in the order situation and planning production cuts.
In the trade sector, the index failed to sustain its recent upward momentum. Both wholesale and retail sectors expressed growing dissatisfaction with current business, pessimism about future conditions also increased.
Fibre2Fashion News Desk (HU)
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