German Manufacturing Downturn Is ‘Bottoming Out’: Ifo’s Fuest

The video discusses the ongoing challenges in the manufacturing sector, noting signs of stabilization despite a severe downturn. It explores the potential spillover effects into the services sector, particularly logistics, but finds no significant spread. The labor market in services remains strong, and consumption has not been heavily impacted. Overall, the weakness in manufacturing is not expected to affect the broader economy at this time.

What factors might lead to a decrease in consumer spending?

What is the current state of the labor market in services?