German Ifo Business Climate dropped to 95.7 in July, down from 97.5 and missed expectation of 97.0. Expectations Index dropped to 92.2, down from 94.0, missed expectation of 94.0. Current Assessment Index dropped to 99.4, down from 101.1, missed expectation of 100.4.
Clemens Fuest, President of the ifo Institute, said “the mood in German C suites is growing uneasy… Companies were less satisfied with their current business situation and are also looking ahead with increased skepticism. The German economy is navigating troubled waters.”
Manufacturing index was in “freefall” and dropped from 1.3 to -4.3. “Such a major decline was last seen in February 2009” and, “no improvement is expected in the short term, as businesses are looking ahead to the next six months with more pessimism.” Services Sector index dropped from 20.3 to 17.7, with expectations slightly pessimistic for the first time since July 2009. Trade index “slid sharply” from 7.9 to 1.4. “Companies are assessing their current situation as considerably less positive, and their outlook for the coming months is markedly more skeptical.” Construction Index dropped rose from 23.0 to 23.3.
