Berlin (Reuters) – Sentiment in the executive floors of the German economy deteriorated more than expected in July.
The Ifo business climate index fell to 88.6 points from the revised 92.2 points in the previous month, as the Munich Ifo Institute announced on Monday in its survey of around 9,000 managers. That is the lowest reading since June 2020. Economists polled by Reuters had only expected a drop to 90.2 points. “High energy prices and the threat of gas shortages are weighing on the economy. Germany is on the verge of recession,” said Ifo President Clemens Fuest. Executives were more skeptical than recently about their business situation and prospects.
According to the Bundesbank, the economy barely moved in the spring given the surge in inflation and the uncertainty about future energy supplies. These factors also weighed on the German economy in the summer. According to a survey by S&P Global, this plummeted in July.
(Report by Reinhard Becker, edited by Sabine Ehrhardt. If you have any questions, please contact our editorial team at [email protected])
