Dusseldorf The mood in the German economy surprisingly improved in November. The Ifo business climate index rose from 84.5 to 86.3 points. Economists had previously only expected an increase to 85.0 points.
According to Ifo President Clemens Fuest, the current gas supply situation plays a major role. Concerns that Germany could experience a gas shortage next year have receded into the distance given the warm autumn weather and the filled gas storage facilities. In addition, consumers are spending more money than sentiment indicators suggest.
Fuest attributes this, among other things, to wage increases in some areas and also refers to the increase in the minimum wage. Another factor is the expected relief from the gas price and electricity price brake. “That seems to encourage consumers – and in the short term it supports the economy,” says Fuest in the podcast. It is still too early to say that a recession is avoidable. “But it won’t be as pitch black as some feared,” said Fuest.
More: “Recession is likely to be less deep than many expected” – Ifo index rises surprisingly significantly
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