Germany's business sentiment declines further in August: ifo

The sentiment among German companies continues to deteriorate, according to the latest data from the ifo Business Climate Index. The index dropped from 87 points in July to 86.6 points in August, reflecting growing concerns about the current economic situation. Companies assessed their present circumstances more negatively, and their outlook for the future has become increasingly pessimistic, signalling that the German economy is sliding further into crisis.

The manufacturing sector saw a significant decline in sentiment, with the index dropping sharply. Companies expressed considerable dissatisfaction with their current business conditions, and expectations for the future have fallen to their lowest level since February. A notable decline in order backlogs was reported, particularly affecting manufacturers of investment goods, who are facing particularly challenging conditions.

In contrast, the trade sector experienced a slight improvement in the business climate after two consecutive months of decline. This uptick was attributed to somewhat less pessimistic expectations for the future. However, traders remain less satisfied with their current business situation, as per the ifo Institute.

Fibre2Fashion News Desk (DP)