German business morale falls slightly in October, beating expectations
FILE PHOTO: The sun sets behind the skyline of Frankfurt, Germany, July 5, 2022. REUTERS/Kai Pfaffenbach
BERLIN (Reuters) -German business morale fell slightly in October, though still beating analyst estimates, as companies expectations improved despite less satisfaction with their current business, a survey said on Tuesday.
The Ifo institute said its business climate index was 84.3 following a revised reading of 84.4 in September. A Reuters poll of analysts had pointed to an October reading of 83.3.
The survey’s expectations index ticked up slightly, to 75.6 from 75.3 the previous month, its first rise since May.
«Their expectations improved, but they are still worried about the coming months. The German economy is facing a difficult winter,» said Ifo President Clemens Fuest.
The German government expects Europe’s largest economy to slide into recession next year as an energy crisis, rising prices and supply bottlenecks take their toll.
Ahead of the statistics office release on Friday, experts polled by Reuters expect German economic output in the third quarter to decline by 0.2% compared with the previous quarter.
Ifo forecast that Germany will contract by 0.6% in the fourth quarter.