Germany Ifo Business Climate dropped slightly from 88.7 to 88.5 in August, above expectation of 86.7. Current Assessment index ticked down from 97.7 to 97.5. Expectations Index also edged down from 80.4 to 80.3.
By sector, manufacturing was unchanged at -6.9. Services rose from 1.0 to 1.3. Trade dropped further from -21.6 to -25.8. Constructions improved from -16.2 to -14.5.
Ifo said, “uncertainty among the companies remains high, and the German economy as a whole is expected to shrink in the third quarter.”
For trade, Ifo said that “many enterprises are facing a dilemma: high inflation is dragging down their business, but they can hardly avoid raising prices due to increased costs.”
