Germany Ifo Business Climate dropped from 96.6 to 94.7 in December, below expectation of 95.4. Current Assessment index dropped from 99.0 to 96.9, below expectation of 97.5. Expectations index dropped from 94.2 to 92.6, below expectation of 93.3. Looking at some more details, manufacturing rose from 16.7 to 17.3. Services dropped from 11.6 to 4.5. Trade dropped from 2.7 to -4.1. Construction dropped from 11.7 to 7.4.
Ifo said: “Sentiment at German companies has clouded over for Christmas. The deteriorating pandemic situation is hitting consumer-related service providers and retailers hard. The ifo Business Climate Index fell from 96.6 points in November to 94.7 points in December. Companies assessed their current business situation as less positive. Pessimism regarding the first half of 2022 also increased. The German economy isn’t getting any presents this year.”
