Ifo Business Survey for July 2006

The business climate in German industry and trade weakened somewhat in July and now stands at the level reached in May. This was the result of less optimism in the business expectations but also the current situation was evaluated a little less positively by the firms. Nevertheless, the basic economic tendency remains upwards, although some factors such as a high or still increasing oil price, a likely decline in world economic activity and the imminent value-added tax increase could have a dampening influence.