The ifo German business sentiment index deteriorated in September

According to the ifo Institute – Leibniz-Institut für Wirtschaftsforschung an der Universität München e.V. on Tuesday, the German business sentiment index deteriorated to 85.4 points in September, an eight-month low, from 86.6 points in August, the expected 86.1 instead of dot.

The deterioration in sentiment is primarily attributable to a weaker assessment of the current situation, as on the one hand the ifo corrected the August value from 86.5 points down to 86.4 points, and on the other hand the September value was significantly lower than the expected 86.1 points, 84.4 points.

The assessment of the prospects, on the other hand, developed as expected, reaching 86.3 points after 86.8 points.

In manufacturing, the index fell to its lowest level since June 2020. The companies assessed their current situation as significantly worse than the previous month, and their expectations turned out to be much more pessimistic. The lack of orders is causing an increasing problem in the basic sectors of the German manufacturing industry.

The business climate also worsened in the service sector, and companies considered their current situation to be significantly worse. However, their expectations were somewhat less pessimistic than in the previous month. However, business sentiment improved in the field of tourism and hospitality.

The index also decreased in the retail sector. In particular, they judged the outlook for the coming months to be weaker than the previous month, but they were also more dissatisfied with their current situation than in the previous month.