Germany Ifo business climate index came in lower than forecasted in October, the survey released by the Institute for Economic Research confirmed on Friday.
Reading for the current assessment survey came in at 111.3 points, compared the previous month’s reading of 111.4.The expectations survey showed that businesses forecasts for the next six months came in at 103.6 point against the forecasted 104.5 and the previous month’s reading 104.2.
A series of business surveys was widely watched by investors as an early indicator of Germany’s economic developments.
The readings were based on approximately 7000 monthly responses from surveys taken by firms in wholesaling, retailing, construction and manufacturing.
Germany Ifo – Manufacturing, Service PMI
On Thursday, the manufacturing and service data were released and showed mixed results in October- showing the manufacturing sector expanded for the fourth consecutive month, while the service sector indicated a decline in the sector.
The Purchasing Managers’ Index (PMI) for Germany’s manufacturing sector advanced to 51.5 points in October, compare to September’s final reading of 51.1 point, according to the preliminary reading released by Markit Economic. Analysts forecasted the figure for the sector to come in at approximately 51.4. The Manufacturing PMI climbed to a two month high in October.
The respective flash reading for the German services sector saw a decline of 52.3 in October , compared to the previous reading of 53.7 in September , dropping to a two-month low.
Germany is still going through coalition talks between the ongoing Chancellor Angela Merkel’s Union of CDU/CDU and the opposition Socialists from SPD.
The third-round talks that was held in Berlin, rounded-up with an agreement to enter official coalition negotiations last week. Some of Angela Merkel’s main priorities in the third term include sending the Eurozone’s crises, trimming-down costs of Germany’s Energiewende and dealing with problem of the country’s population etc.
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