German business confidence fell for the fourth straight month in October and is now at its lowest level in six months, according to research institute Ifo.
In particular, persistent problems in the supply chain are a source of concern for German companies, the researchers say.
The index that measures confidence now stands at 97.7. There is more uncertainty among entrepreneurs, in particular concerning future expectations. But they are also less optimistic about the current situation due to shortages of materials.
For example, the lack of computer chips at car companies is inhibiting production in the German industry.
Ifo president Clemens Fuest explains “sand in the wheels of the German economy”, hindering the recovery. Major German economic research institutes, including Ifo, have recently slashed their expectations for the growth of the German economy this year.