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The corporate climate at Ifo lights up

The current business is still unsatisfactory for many German companies. However, optimism is returning to the economy.

The mood on the executive floors of German companies brightened surprisingly in November. The Ifo business climate index rose to 86.3 points from a revised 84.5 points the previous month, the Munich Ifo Institute reported on Thursday

survey of approximately 9,000 executives. Economists polled by Reuters had only expected an increase to 85.0 points.

While companies were less satisfied with their current business, pessimism regarding the coming months has eased significantly. “The recession is likely to be shallower than many expected,” said Ifo president Clemens Fuest.

From the point of view of the top economist, the mild climate so far, the full gas storage facilities and the concrete plans for the LNG terminals speak of a slight improvement in the economic picture. According to the Bundesbank, Germany is facing a winter recession. But a gas shortage could probably be avoided.

And the latest survey data from financial services provider S&P Global suggests that the economic downturn has already eased in November as price pressures eased. In the summer quarter, the economy was still growing due to the lifting of many coronavirus measures. Gross domestic product increased by 0.3% from July to September.

The current business is still unsatisfactory for many German companies. However, optimism is returning to the economy.

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