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- German IFO Business Climate Index drops in July
German IFO Business Climate Index drops in July
According to the report from Ifo Institute for Economic Research, German business morale deteriorated more than expected in July, hitting its lowest level since April 2013. Today's survey is a further sign that a manufacturing crisis is dragging on overall private sector activity in Europe's largest economy.
German Business Climate Index drops to 95.7 in July from 97.4 in June. Economists had expected a decrease to 97.1. Meanwhile, the Current Economic Assessment arrived at 99.4 points in the reported month as compared to last month's 100.8 and 100.4 anticipated. On the other hand, the IFO Expectations Index – indicating firms’ projections for the next six months, came in at 92.2 for July, down from previous month’s 94.2 reading and worse than market expectations of 94.0.
"The German economy is navigating troubled waters," Ifo President Clemens Fuest said in a statement. He also said that companies were less satisfied with their current business situation and are also looking ahead with increased scepticism.
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