Ifo Business Survey of August 2008 in brief

The Ifo Business Survey Index for German Manufacturing, Retail and Wholesale Trade, and Construction fell in August. This is its third consecutive decline. The firms assess the current state of business as markedly more unfavourable than in the preceding month. In addition, they expect business also to be weaker in coming months: Business expectations have continuously deteriorated in the past three months. According to the survey findings, the German economy will clearly slow down. The Ifo Employment Barometer, which is derived from the Business Survey data, has also deteriorated in August. This marks the third decline in a row. Hardly any firm plans to increase employment.