Business climate in euro area countries continued to deteriorate in July
Business sentiment in the Eurozone has deteriorated once again. The sentiment index fell by 0.1 points to 95.8 in July, according to data from the EU Commission. Economists polled by news agency Reuters had even expected a steeper decline to 95.4 points.
Sentiment in Germany's business sector continued to deteriorate in July, according to the Ifo business climate index published last week. "The German economy is stuck in a crisis," said Ifo President Clemens Fuest. His institute does not expect a swift recovery in the largest economy of the Eurozone.
In the second quarter, the German economy surprisingly went into reverse. Gross domestic product here fell by 0.1 percent quarter-on-quarter from April to June. Economists had expected growth of 0.1 percent.
The Eurozone's economic downturn seems to be affecting its prominent member, as the German economy also demonstrated a decline in business sentiment during July. This trend continues in the euro area, as indicated by the recent fall in the sentiment index.
The euro area's struggle with economic challenges is also reflected in the projections of Ifo President Clemens Fuest, who foresees a prolonged crisis in Germany, the region's largest economy.
