The energy crisis and delivery bottlenecks are considered to be a major burden for companies.
(Photo: imago/Hans Blossey)
Berlin The mood in the executive floors of German companies brightened up surprisingly in November. The Ifo business climate index rose to 86.3 points from the revised 84.5 points in the previous month, as the Munich-based Ifo Institute announced on Thursday in its survey of around 9,000 executives.
Economists surveyed by Reuters had only expected an increase to 85.0 points. Although the companies were less satisfied with their current business, the pessimism with regard to the coming months eased noticeably. “The recession is likely to be less deep than many had expected,” said Ifo President Clemens Fuest.
From the point of view of the top economist, the mild climate so far, full gas storage facilities and the concrete plans for LNG terminals speak for a slight brightening of the economic picture. According to the Bundesbank, Germany is facing a winter recession.
But a gas shortage could probably be avoided. And the latest survey data from financial services provider S&P Global suggests that the economic slide has already moderated in November as price pressure eased.
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>> Read here: EU Commission reprimands German budget policy: Excessive and untargeted spending
In the summer quarter, the economy was still growing due to the lifting of many corona measures. Gross domestic product increased by 0.3 percent from July to September.
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