Eng
The ifo Business Climate Index fell to 87.0 points in July, after 88.6 points in June. Companies are less satisfied with the current business situation. Scepticism regarding the coming months has increased considerably.
In manufacturing, the business climate has fallen significantly. Order backlogs have continued to decline. The capacity utilisation has fallen to 77.5 percent and is therefore 6 percentage points below the long-term mean.
In the services sector, the index showed a fall once again, following a rise in recent months. Companies are pessimistic about the future.
In retail trade, the business climate has also weakened. Companies are less satisfied with current business. There is also pessimisms regarding expectations.
In construction, the index has fallen. Companies’ assessment of the current situation has worsened, while expectations remain underpinned by virtually unchanged levels of pessimism.
The Federal Statistical Office of Germany (Destatis) reports that the country’s gross domestic product (GDP) fell by 0.1 percent in Q2 2024 compared with Q1. The consensus forecast of experts suggested a 0.1 percent increase in GDP.
Source: trans.info