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German business sentiment drops in July as economic crisis deepens

26 Jul '24

1 min read

German business sentiment drops in July as economic crisis deepens

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Sentiment among companies in Germany has worsened significantly in this month.
The manufacturing sector experienced a notable decline in business climate, with poorer assessments of the current situation, decreased expectations, and lower order backlogs.
The business climate in the trade sector also declined, particularly affecting retailers.

Sentiment among companies in Germany has deteriorated significantly, according to the latest ifo Business Climate Index. The index fell to 87.0 points in July, down from 88.6 points in June. This decline reflects growing dissatisfaction with the current business situation and increasing scepticism about the future.

The German economy is stuck in crisis, the ifo Institute said in a press release.

In the manufacturing sector, the business climate has fallen substantially. Assessments of the current situation have worsened considerably, and expectations for the coming months have also declined. Order backlogs have decreased, and capacity utilization has dropped to 77.5 per cent, which is 6 percentage points below the long-term mean.

The trade sector is also experiencing a decline in business climate. Companies are less satisfied with their current business, with retailers being particularly affected. There is rising uncertainty and doubt about the months ahead among businesses in this sector.

Fibre2Fashion News Desk (KD)

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