Reuters reports that an Ifo institute survey showed that German business morale fell for the fourth month running in October as supply bottlenecks continued to hold back factory output in Europe's largest economy.
Business climate index fell to 97.7 from an upwardly revised 98.9 in September. Economists had expected a decrease to 97.9. Meanwhile, the Current Economic Assessment arrived at 100.1 points as compared to last month's 100.4 and 99.4 anticipated. The IFO Expectations Index – indicating firms’ projections for the next six months, fell to 95.4 in October from the previous month’s 97.4 reading and worse than the market expectations of 96.4.
Following the release of the German IFO Business Survey, the institute’s Economist Klaus Wohlrabe said that “supply chain problems are causing trouble for companies, production capacities are falling.”