German business morale falls on manufacturing ‘bottleneck recession’

BERLIN, Sept 24 (Reuters) – German business morale fell for the third month running in September, hit by supply chain problems that are causing a “bottleneck recession” for manufacturers in Europe’s largest economy, a survey showed on Friday.

The Ifo institute said its business climate index fell to 98.8 from an upwardly revised 99.6 in August. A Reuters poll of analysts had pointed to a September reading of 98.9.

“Problems in the procurement of raw materials and intermediate products are putting the brakes on the German economy,” Ifo President Clemens Fuest said in a statement. “Manufacturing is experiencing a bottleneck recession.”

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