German Ifo Business Climate Index dropped to 99.2 in April, down from 99.7 and missed expectation of 99.9. Expectation Index dropped to 95.2, down fro 95.6 and missed consensus of 96.0. Current Assessment Index also dropped to 103.3, down from 103.8 and missed expectation of 103.6.
Ifo President Clemens Fuest noted that “the mood among German managers became slightly gloomier this month… March’s gentle optimism regarding the coming months has evaporated. The German economy continues to lose steam.” Ifo economist Klaus Wohlrabe said the data points to 0.8% growth in Germany this year.
Looking at the details, business climate in manufacturing “has again worsened markedly”, down from 6.7 to 4.0. It’s the eighth straight month of decline. Services continued recovery from 26.1 to 26.3, comparing to cyclic low at 21.5 in February. Trade worsened again from 8.2 to 7.1. Construction improved slightly from 20.4 to 21.4.