ifo Business Climate Index declines (July 2024)
Sentiment has declined considerably at companies in Germany. The ifo Business Climate Index fell to 87.0 points in July, after 88.6 points in June. The companies were less satisfied with the current business situation. Skepticism regarding the coming months has increased considerably. The German economy is stuck in crisis.
In manufacturing, the business climate has fallen significantly. In particular, assessments of the current situation were considerably poorer. Expectations also declined, as did order backlogs. Capacity utilization has fallen to 77.5 percent, and therefore 6 percentage points down on the long-term mean.
In the service sector, the index fell once again having risen in recent months. This was mainly due to more pessimisms regarding expectations. Service providers were also a little less positive in terms of the current situation.
In trade, the business climate also declined. The companies were less satisfied with current business. This is particularly true for retailers. Doubts regarding the months ahead also rose.
In construction, the index fell. Assessments of the business situation declined slightly. Expectations continue to be affected by significant levels of pessimism.
Clemens Fuest
President of the ifo Institute
Survey
ifo Business Climate Index declines (July 2024)
Sentiment has declined considerably at companies in Germany. The ifo Business Climate Index fell to 87.0 points in July, after 88.6 points in June. The companies were less satisfied with the current business situation. Skepticism regarding the coming months has increased considerably. The German economy is stuck in crisis.
