Ifo Institute: German Companies Cut Investments
German businesses are cutting back on the amount of planned investments amidst challenges in the biggest economy in Europe, show the findings of a study, which is conducted twice a year by the research institute Ifo.
Based on a poll of 5,000 businesses, the index of net investment plans dropped from 14.7 points in March to 2.2 points in November.
Ifo’s Lara Zarges stated, « the investment climate has deteriorated markedly, » attributing the decline to « weak demand, uncertain economic policy, and the increased cost of raising finance. »