German business morale weak in Sept
German business sentiment fell less than expected in September but it was the fifth consecutive decline, a key survey showed Monday, as Europe's biggest economy struggles to recover from a recession.
The Ifo institute's closely watched confidence barometer, based on a survey of 9,000 companies, ticked down to 85.7 points from 85.8 the previous month.
Analysts surveyed by financial data company FactSet had expected a sharper fall, at 85 points.
"Sentiment in the German economy remains bleak," said Ifo president Clemens Fuest. "The German economy is treading water."
The survey found that companies were slightly less pessimistic than in August about the outlook for the months ahead, but more downbeat about their current business situation.
The mood was especially grim in the construction sector where the confidence index slumped to its lowest level since 2009, as higher interest rates and soaring costs for materials take their toll on the housing market.
Germany's crucial manufacturing sector, hit hard by weaker demand from abroad and elevated energy costs, also stayed pessimistic as order books shrank further.
The Ifo reading is the latest in a series of gloomy data for the German economy, which sank into a recession at the start of the year and stagnated in the second quarter.
The European Commission earlier this month said it now expects the German economy to contract by 0.4 percent this year, compared to a previous forecast of 0.2 percent growth.
The International Monetary Fund has forecast that Germany will be the only major advanced economy to shrink in 2023.
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