Ifo Institute survey for June shows increase in banks’ reluctance to lend

It is not only the order situation for construction and industry that remains difficult, but also financing. According to a new survey by the ifo Institute (https://www.ifo.de), 27.1 per cent of companies currently in negotiations reported a reluctance on the part of banks in June. In March, the figure was 25.2 per cent.
Economic downturn, no loans

According to the ifo economic researchers, caution has risen particularly sharply in the construction and industrial sectors. “In view of the weak investment climate in Germany, easier access to credit would be desirable,” says Klaus Wohlrabe, head of the ifo surveys.

The increase in the ifo credit hurdle was driven by industry (from 19.2 to 26.2 per cent), construction (from 22 to 32.2 per cent) and wholesale (from 21.4 to 24.6 per cent). In retail, the share rose only slightly from 29.5 to 30 per cent. Service providers alone saw a decline to 27 per cent, down from 29.3 per cent in March.