International Finance
Economy

ifo Business Climate Index for the service sector drops

The business climate indicator rose for architects and engineers

Sentiment among German service providers weakened slightly. The business climate index dropped from 111.5 points last month to 111.1 points in November. Service providers’ assessments of their current business situation are no longer as good as last month, but their expectations are more optimistic. Service providers still plan to recruit more staff.

The business climate indicator rose for architects and engineers. Assessments of the current business situation were even more favourable than last month and many engineers expect a further improvement in the future. In the catering sector the index rose for the fourth consecutive month. Restaurants and pubs were more satisfied with their current business situation and many expect to do good business over Christmas and during the winter. The index declined slightly in the personnel recruitment and placement sector. Due to positive developments in turnover, assessments of the current business situation were upwardly corrected. The short-term business outlook, however, deteriorated.

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