Ifo Business Survey in October 2010

The Ifo Business Climate indicator for industry and trade in Germany continued its climb in October. The firms once again gave somewhat more positive assessments of their current business situation and their business expectations for the coming half year are more optimistic than in September. Nevertheless, the Achilles heel of the recovery could still prove to be capacity utilisation in manufacturing. Despite an increase in the utilisation rate, it is still slightly below its long-term average. The Ifo Employment Barometer climbed clearly in October. The upswing in Germany is also an upswing on the labour market.