Germany’s Ifo Business Climate Index fell from 88.6 to 87.0 in July, missing expectations of 89.0. Current Assessment Index also dropped from 88.3 to 87.1, below the anticipated 88.5. Additionally, Expectations Index declined from 88.8 to 86.9, underperforming the forecast of 89.0.
Sector-wise, manufacturing index plunged from -9.3 to -14.1, indicating significant dissatisfaction among manufacturers. Services sector saw a decline from 4.2 to 0.7, while the trade sector fell from -23.6 to -27.8. Construction also showed a decrease, moving from -25.2 to -26.0.
Ifo noted that sentiment has “declined considerably,” with companies expressing growing dissatisfaction with the current business situation. The level of skepticism regarding the coming months has increased notably. The German economy, as described by Ifo, is currently “stuck in crisis.”
Full German Ifo release here.
