Mood in the German economy worsened further
The mood in the German economy has worsened for the third consecutive month in July, sending a negative economic signal. The Ifo business climate dropped to 87.0 points from 88.6 points in the previous month, as the Munich Ifo Institute announced in its survey of around 9,000 business leaders on Thursday.
Experts surveyed by Reuters had expected an increase to 88.9 points. Companies assessed their current business situation more negatively and also held more pessimistic views for the coming months. "The German economy is in crisis," said Ifo President Clemens Fuest.
According to DekaBank economist Andreas Scheuerle, the third decline in the Ifo Barometer indicates a turnaround trend: "We'll have to wait longer for a real economic upturn." Ifo expert Klaus Wohlrabe also sees it that way: "The malaise is spreading through almost all industries. There are few bright spots." There is little dynamism from abroad, and consumers are continuing to hold back on spending: "The recovery of the German economy is still to come," he concluded in an interview with Reuters.
The sequence of negative economic indicators in Germany has continued into August, making it four consecutive months with a worsening mood. With the German economy showing no signs of improvement, many businesses are cautious about their future prospects for the remainder of the year.
