The German business confidence index of the Ifo Institute for Economic Research in Munich fell more than expected in June. It fell to 88.4 points from 91.7 points in May. The latter was the first decline after six consecutive months of steady improvement. Analysts expected 91.1 points for June, 88.4 points, the lowest since last December.
The index showing the perception of the current situation decreased from 94.8 points in the previous month to 93.7 points, but this is still better than the expected 93.5 points. Survey respondents judge the future more pessimistically than it was in April, as the index indicates a decrease in their expectations to 83.6 points from 88.6 points in the previous month instead of the expected 88 points.
According to the IFO data report, “storm clouds are gathering over the German economy”
Industrial demand is weak and order books are declining,
Partly because of rising interest rates. The export outlook for Europe’s largest economy has also “significantly decreased”.
Clemens Fuest, President of Ifo, summed up the findings that “the mood in the German economy has deteriorated significantly.”
According to Forex Live, in addition to the tragically bad PMI published last week, the Ifo data also shows that the German economy is facing a difficult situation, and the risk of recession is increasing.
