German Business Morale Drops in November

German business morale has worsened more than anticipated in November, with the Ifo business climate index dropping to 85.7 from 86.5 in October, below analysts' expectations of 86.0. This decline reflects a deteriorating assessment of the current economic situation, which fell to 84.3, while future expectations saw a slight decrease to 87.2. Despite this downturn, retail and wholesale sectors reported better assessments than in previous months. Economists emphasize that potential US tariffs and the upcoming US elections may significantly impact German competitiveness, particularly in the automotive sector. The overall sentiment suggests that Germany could be heading towards stagnation or recession, especially with the manufacturing sector already struggling. The results indicate that while some companies are not overly concerned about external factors yet, the situation remains precarious as political uncertainties loom.