BERLIN, Nov. 24 (Xinhua) -- Germany's business sentiment slipped again in November, the second drop since September, adding to concerns that Europe's largest economy may face another year of stagnation.
The ifo Business Climate Index fell to 88.1 points in November from 88.4 in October, the Munich-based ifo Institute said on Monday.
Sentiment in services has improved, but confidence in manufacturing, trade, and construction all dropped. Retailers also reported a slow start to the Christmas season.
The monthly survey of around 9,000 companies showed business expectations turning more pessimistic. "Businesses have little faith that a recovery is coming anytime soon," ifo President Clemens Fuest said.
Manufacturers grew more cautious about the coming months, reversing the relative optimism they had in previous months, ifo Institute said.
Carsten Brzeski, global head of macro at ING Research, said the reversal in expectations reflects fading early-year optimism, with fiscal measures announced at the start of the year progressing more slowly than expected, weighing on both corporate and consumer confidence.
"The German economy remains deeply stuck in stagnation at the end of the year," Brzeski said. He added that domestic public investment plans, including military spending, have fallen short of their targets. Meanwhile, external pressures, such as U.S. tariffs and a stronger euro, continue to restrain exports.
Preliminary figures from the Federal Statistics Office show that Germany's economy nearly stagnated in the third quarter. The final reading, due on Tuesday, will give a clearer picture of whether the country can avoid a third consecutive year of contraction. ■
