(MENAFN) Sentiment among companies in Germany softened in November, as the business climate index dropped to 88.1 points from 88.4 points in October, according to the Ifo Institute on Monday.

The decrease is largely driven by more cautious expectations among firms, the institute noted, although businesses judged their current situation as slightly more favorable.

In the manufacturing sector, the index fell, with future outlooks taking a significant hit as companies became more wary about the upcoming months.

Businesses reported reduced order volumes, even as the assessment of current business conditions showed a modest improvement.

The Ifo Institute stated: "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."

Additionally, the trade and construction sectors experienced downturns, the institute added.

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