The business climate in North Rhine-Westphalia in September 2019 is characterized by increasing skepticism. (Photo: © Prig MORISSE/123RF.com)
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21 October 2019
North Rhine-Westphalian companies are increasingly pessimistic about the future, but assess the current business situation as unchanged good.
The downward trend in the NRW.BANK .ifo business climate index , which began in autumn 2018, continued, falling from 8,7 to 7,4 balance points. The reason for this lowest level since the end of 2012 is the more pessimistic business outlook : it dropped from -2,3 to -4,7 points. For the business climate indicator, approximately 1.500 companies in North Rhine-Westphalia are surveyed monthly about their future expectations and their current business situation.
For detailed analysis, see NRW.BANK ifo Business Climate!
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"The difficult global economic situation is also leaving its mark on North Rhine-Westphalia," commented Eckhard Forst, CEO of NRW.BANK, on the results. "However, companies still rate their current business situation as good. This suggests that they are prepared for a temporary economic downturn."
The recent downturn in the business climate is affecting almost all sectors . However, the construction industry continues to prove a stabilizing force. In the main construction sector, the business climate even improved in September compared to the previous month. Nevertheless, the first signs of an economic slowdown were also evident here. The positive momentum recently came exclusively from the public sector's civil engineering projects. In contrast, the climate in the cyclical commercial building construction sector plummeted to a three-year low.
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