UK economy has a ‘sprained ankle’ not a broken leg, says Hunt

German companies have slashed their investment plans, according to a benchmark survey that adds to the woes of Europe’s largest economy.

The Ifo Institute said its twice yearly survey of German companies, based on responses from 5,000 companies, found they had “significantly reduced their investment plans” for this year and next. Its index of net investment plans fell from 14.7 in March to 2.2 in November.

“The investment climate has deteriorated noticeably,” said Lara Zarges at Ifo, blaming “increased financing costs, weak demand and economic policy uncertainty”.

Last month’s constitutional court ruling, which left the government with a €60bn hole in its budget, has added to uncertainty for companies about how much support they will receive from Berlin next year.


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