ifo Business Climate Index deteriorates (August 2024)
The sentiment among companies in Germany is on a downward trend. The ifo Business Climate Index fell from 87.0 points in July to 86.6 points in August. Companies assessed their current situation as worse. In addition, expectations were more pessimistic. The German economy is increasingly falling into crisis.
In manufacturing, the index fell considerably. Companies were significantly less satisfied with the current business situation. Expectations fell to the lowest level since February. Companies once again reported declining order backlogs. The situation for investment goods manufacturers, in particular, is difficult.
In the service sector, the business climate deteriorated. This was due in particular to skeptical expectations. In addition, the current business situation worsened somewhat.
In trade, the business climate rose slightly after declining two times in a row. That was due to the somewhat less pessimistic expectations. Traders were, however, less satisfied with the current business situation.
In construction, the index was unchanged. On the one hand, companies were slightly more satisfied with the current business situation. On the other, their expectations declined slightly.
Clemens Fuest
President of the ifo Institute
Survey
ifo Business Climate Index deteriorates (August 2024)
The sentiment among companies in Germany is on a downward trend. The ifo Business Climate Index fell from 87.0 points in July to 86.6 points in August. Companies assessed their current situation as worse. In addition, expectations were more pessimistic. The German economy is increasingly falling into crisis.
