{"id":44262,"date":"2023-11-27T17:39:03","date_gmt":"2023-11-27T17:39:03","guid":{"rendered":"https:\/\/hg-businessconsulting.com\/?p=44262"},"modified":"2023-11-27T17:39:03","modified_gmt":"2023-11-27T17:39:03","slug":"german-business-sentiment-improves-in-november","status":"publish","type":"post","link":"https:\/\/hg-businessconsulting.com\/economy\/german-business-sentiment-improves-in-november\/","title":{"rendered":"German Business Sentiment Improves In November"},"content":{"rendered":"
Business confidence in Germany improved for the third month in a row in November signaling that the largest euro area economy<\/span> is stabilizing at a low level, survey results from the Munich-based ifo Institute showed Friday.<\/p>\n The business<\/span> climate index rose to 87.3 in November from 86.9 in October. The reading was seen at 87.5. <\/p>\n Companies assessed their current business situation as somewhat better and their expectations for the coming months turned less pessimistic. <\/p>\n The current situation indicator rose to 89.4 from 89.2 in the previous month. This was slightly below economists’ forecast of 89.5.<\/p>\n At the same time, the expectations indicator improved to 85.2 from 84.8 a month ago. The score was expected to rise more markedly to 85.7. <\/p>\n Data released earlier in the day showed that the economy shrank 0.1 percent quarterly in the third quarter, offsetting the 0.1 percent rise in the second quarter. <\/p>\n The Bundesbank forecast the German economy to shrink again in the fourth quarter before undergoing a slight increase in economic output in the first quarter of 2024. <\/p>\n Capital Economics’ economist Bradley Saunders said the ifo survey does not change the assessment that GDP will contract again in the fourth quarter and will remain in near-recession conditions in the first half of 2024 too. <\/p>\n ING economist Carsten Brzeski said the ifo survey points to a bottoming out of the German economy, rather than an imminent rebound.<\/p>\n In manufacturing, the business climate rose markedly, the ifo Institute said. <\/p>\n Companies were more satisfied with their current business and their skepticism regarding the months ahead reduced noticeably. <\/p>\n Business confidence among service providers worsened a little.<\/p>\n Service providers assessed their current situation as somewhat less good. Moreover, they adjusted their expectations slightly downward. <\/p>\n Business confidence in trade strengthened notably. The indicators for the current situation as well as for expectations improved. <\/p>\n This was particularly evident in wholesale, while retailers have rather low expectations for their Christmas business. <\/p>\n In construction, the business climate index rose in November. Companies assessed their current business as somewhat better and expectations improved. <\/p>\n Despite this, sentiment in construction remains extraordinarily negative overall, the survey showed. <\/p>\n