German business morale darkens on supply bottlenecks, Covid wave
German business morale deteriorated for the fifth month running in November as supply bottlenecks in manufacturing and a spike in coronavirus infections clouded the growth outlook for Europe's largest economy, a survey showed on Wednesday.
The Ifo institute said its business climate index fell to 96.5 from 97.7 in October. A Reuters poll of analysts had pointed to a November reading of 96.6.
"Supply bottlenecks and the fourth wave of the coronavirus are challenging German companies," Ifo President Clemens Fuest said.
Company executives were less satisfied with their current business situation and their expectations for the next six months were more pessimistic, the survey showed.
Despite record high orders, German carmakers and other manufacturers are forced to scale back production due to a lack of raw materials and intermediate goods such as microchips.