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Ifo: German Building Materials Manufacturers Report 'Distinctly Gloomier' Sentiment in March

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The business sentiment among Germany's building materials companies was "distinctly gloomier" in March amid higher energy costs, according to an ifo Institute survey published Monday.

The ifo business climate index for the sector dropped to -23.5 points from -17.9 points in February, with companies pessimistic about their present and future situation. Within this context, surveyed companies intend to increase prices and reduce their output.

Conversely, ifo noted that order backlogs are "considerably more favorable" in March, rising to -43.5 points from -63.7 points a year ago, suggesting the industry is "slowly emerging" from the crisis, albeit progress is tempered by the fallout from the Middle East conflict.

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