A closely watched survey shows that German business confidence has fallen for the fifth consecutive month due to continued supply chain bottlenecks and the return of the coronavirus infection in Europe’s largest economy
The Ifo Institute said its monthly confidence index fell to 96.5 points in November from 97.7 in the previous month. The company’s assessment of its current situation and its prospects for the next six months has deteriorated. This is the lowest figure since February.
In a statement, Ifo said: “Supply bottlenecks and the fourth wave of coronavirus are challenging German companies.” It said that although the future prospects of manufacturers have improved, the prospects of service companies are deteriorating and COVID-19 infection The number of people has risen sharply, setting a series of new records, leading to a plunge in expectations for the tourism and hotel industries.
The Ifo survey is based on responses from approximately 9,000 companies from different industries.
Although the new wave of coronavirus infections has prompted Germany to increase restrictions, and it looks likely to lead to more restrictions, the country’s post-election political transition appears to be coming to an end, eliminating another source of uncertainty.
The three parties that are negotiating the formation of the next German government plan to submit their joint agreement later on Wednesday, which is a move towards being led by center-left leader Olaf Scholz in the coming weeks A key step taken by the new government.