ISTANBUL

Sentiment among companies in Germany has weakened in November as the business climate index fell to 88.1 points, from 88.4 points in October, the Ifo Institute announced on Monday.

The decline stems from more pessimistic expectations by firms, the institute said, adding that companies assessed their current situation as somewhat more positive.

On the manufacturing side, the index declined, with expectations taking a notable hit as firms grow more cautious about the months ahead.

Companies reported lower order books, while the current business conditions slightly improved.

Ifo Institute said: "In the service sector, the business climate improved once again. Service providers assessed the current situation as somewhat more positive; however, their expectations deteriorated slightly.

"There was a noticeable setback in the transport and logistics sector, while sentiment in tourism brightened significantly."

Trade and construction sectors also posted declines, it added.