Germany Ifo Business Climate Dropped from 92.2 to 88.6 in July, below expectation of 90.5. That’s the lowest level since June 2020. Current Assessment index dropped from 99.4 to 97.7, below expectation of 98.2. Expectations index dropped from 85.5 to 80.3, below expectation of 83.0.
By sector, manufacturing dropped from 0 to -7.1. Services dropped from 10.9 to 0.9. Trade dropped from -14.7 to -21.6. Construction dropped from -9.7 to -17.0.
Ifo said: “Companies are expecting business to become much more difficult in the coming months. They were also less satisfied with their current situation. Higher energy prices and the threat of a gas shortage are weighing on the economy. Germany is on the cusp of a recession.”
