ifo Business Climate Index declines (June 2024)
Sentiment has deteriorated at companies in Germany.The ifo Business Climate Index declined in June to 88.6 points, down from 89.3 points in May. This was due to more pessimistic expectations. However, the assessments of the current situation remained unchanged. The German economy is having difficulty overcoming stagnation.
In manufacturing, the business climate declined after three rises in a row. Companies were again more skeptical for the months ahead. They were particularly concerned by the declining order backlog, but were somewhat more satisfied with current business.
In the service sector, the index rose. Service providers assessed their situation more positively. The outlook for the second half-year also continued to brighten. Sentiment in the hotel sector, in particular, improved, while the hospitality sector expressed dissatisfaction.
In trade, the business climate deteriorated considerably. Regarding expectations, skeptical sentiment increased markedly. Assessments of current business have been corrected downward. Both wholesalers and retailers were equally impacted by the negative development.
In construction, the index rose slightly. This was thanks to less pessimistic expectations. However the current situation was assessed as worse. A lack of orders remains a core problem.
Clemens Fuest
President of the ifo Institute
Survey
ifo Business Climate Index declines (June 2024)
Sentiment has deteriorated at companies in Germany.The ifo Business Climate Index declined in June to 88.6 points, down from 89.3 points in May. This was due to more pessimistic expectations. However, the assessments of the current situation remained unchanged. The German economy is having difficulty overcoming stagnation.
