Mubasher: Sentiment among German companies eased in November after the Ifo Business Climate Index fell to 102.0 points from a seasonally-adjusted 102.9 points in October, registering the third monthly drop in a row.

“Companies scaled back their assessments of the current business situation albeit from a high level. Their business expectations also clouded over. Together with other indicators, these results point to 0.3% economic growth in the fourth quarter at most. The German economy is cooling down,” the report issued by CESIFO showed.

The Ifo business index registered declines across several sectors, namely manufacturing, services, trade, and wholesaling, with retail being the only sector that witnessed a minor rise.

In terms of manufacturing, the German business client fell further on the back of “less favourable assessments of the current business situation,” the report released on Monday indicated, adding that projections were also lowered with only a handful of manufacturers forecasting an improvement over the next six months.

Despite the gloomy outlook, several Ifo survey participants revealed plans to increase prices.

As for the German services sector, the index decline in November on “less pessimistic” projections. “Service providers upwardly revised their assessments of the current business situation slightly.”

The trade sector index was also down as “both climate components declined” from October, while developments at the two levels of trade varied.

The wholesale sector “deteriorated”, whereas the retailing sector witnessed an improved business climate.

“The construction industry’s record run stalled. After four consecutive increases, the index dropped sharply this month due to far less optimistic business expectations. Contractors also scaled back their assessments of the current business situation,” the report said.

By 9:39 am GMT, EUR/USD grew 0.37% to $1.1379.