GERMANY: Ifo Business Climate Index continues to fall

The Ifo Business Climate Index for industry and trade in Germany fell in October to 103.2 points from 104.7 points in the previous month, the Ifo Institut said on Monday.
Assessments of the current business situation were once again less favourable than last month. Expectations with regard to the six-month business outlook continued to cloud over. The outlook for the German economy deteriorated once again.
In manufacturing the business climate deteriorated significantly. Assessments of the current business situation were markedly less favourable and are now only marginally higher than the long-term average. Business expectations also continued to deteriorate. Capacity utilisation rates fell by 0.3 percentage points to 83.7%. Export business expectations, however, was the only area in which manufacturers did express mild confidence.
In wholesaling the business climate index rose. After three consecutive decreases, assessments of the current business situation improved considerably. Business expectations remained slightly pessimistic. In retailing the business climate continued to cloud over. Retailers were markedly less satisfied with their current business situation. Their expectations, by contrast, brightened somewhat.
In construction the business climate indicator dropped marginally, but remains at a very good level. Construction firms assessed their current business situation as slightly more favourable. Business expectations, however, fell to their lowest level in a year.