German business morale improves despite recession
FRANKFURT: German business sentiment improves in November A key survey was released on Thursday. As hopes grow that a recession in Europe’s top economies will be less severe than feared.
The Ifo Institute’s monthly sentiment barometer, surveying about 9,000 companies, hit 86.3 points, rising for the second straight month after a revised October 84.5 point. German business morale improves despite recession.
before october Readings dropped for four straight months.
“Confidence in the German economy is improving,” Ifo president Clemens Fuest said in a statement.
“Pessimism about the coming months go down sharply The recession may prove to be less severe than many expected.”
Germany is facing soaring inflation. Consumer prices soared 10.4% in October. which is driven by high energy costs. After Russia cuts gas supplies after invasion of Ukraine.
The government expects the European economy to contract by 0.4 percent in 2023, with inflation continuing to rise.
But growing hopes that the government’s easing measures This includes a 208 billion euro ($208 billion) package to protect companies and citizens from inflation. Will drop in price soon.
Germany’s gas storage facilities were filled earlier this month. Alleviating concerns about shortages in the winter.
Carsten Brzeski of bank ING said the Ifo survey “adds to the recent glimmer of hope that the German economy may avoid a winter recession.”
But he added that the government’s stimulus “It will be too late to prevent the economy from contracting in the fourth quarter. German business morale improves despite recession
“however There was enough volume to support the contraction and turn a harsh winter recession into a shallow one.”
Other surveys are showing signs of improvement.
earlier this month ZEW Institute Survey Shows Investor Confidence Growing for Second Consecutive Month.