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German business sentiment unexpectedly darkens in July, says Ifo

 

German business morale unexpectedly declined in July, reflecting growing pessimism about the performance of Europe’s largest economy, according to a survey of around 9,000 managers released on Thursday.

The Ifo Institute reported that its business climate index dropped to 87.0 in July from 88.6 in June, falling short of the 88.9 forecast by analysts in a Reuters poll.

“The German economy is stuck in the crisis,” said Ifo President Clemens Fuest.

The current conditions index decreased to 87.1 from 88.3 the previous month, contrary to analysts’ expectations in the Reuters poll, which had predicted a rise to 88.5.

Skepticism about the coming months has also noticeably increased. The expectations index fell to 86.9 in July from 88.8 in June, below the analysts’ forecast of 89.0.

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