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by IANS |
Berlin, March 26 (IANS) Sentiment among German companies "has collapsed" due to the Ukraine crisis, the Munich-based Ifo Institute for Economic Research has said.
Accordingly, the institute's seasonally adjusted Business Climate Index dropped from 98.5 points in February to 90.8 points in March, Xinhua news agency reported.
Due to the international sanctions against Russia and the supply chains interrupted by the military conflict in Ukraine, several German companies, including industry heavyweights such as carmaker Volkswagen, have stopped all business with Russia.
Expectations for future business have deteriorated particularly strongly as German companies are "expecting tough times," Ifo President Clemens Fuest said. The corresponding indicator saw a "record collapse" of 13.3 points within one month.
In both manufacturing and trade, the overall index also fell faster than ever before. While the manufacturing sector was in the negative throughout, assessments of the current situation in the trade sector remained good.
Sentiment in the construction and services sectors has worsened due to pessimistic expectations. Although Germany's construction companies have assessed the current situation as worsening, most of them are "still satisfied with their current business."
