Construction and Manufacturing in Germany Have More Difficulty Obtaining Loans
German companies have somewhat more difficulty obtaining new loans, according to surveys by the ifo Institute. In June, 27.1% of companies in ongoing credit negotiations reported restraint on the part of banks; in March, the figure was 25.2%. Caution rose particularly sharply in the construction industry and manufacturing. “In view of weak investment in Germany, easier access to loans would be desirable,” says Klaus Wohlrabe, Head of Surveys at ifo.
The rise in the ifo Credit Constraint Indicator was driven by manufacturing (from 19.2 to 26.2%), construction (from 22.0 to 32.2%), and wholesale (from 21.4 to 24.6%). In retail, the share rose only slightly from 29.5 to 30.0%. The only drop in the figure, from 29.3% in March to 27%, was for service providers.
Publication
ifo Konjunkturperspektiven is a monthly German-language online publication that presents the latest results from ifo’s business surveys in the form of graphics and tables.
