Germany's business sentiment declines in June 2024: ifo

Sentiment among German companies has deteriorated in June, according to the latest ifo Business Climate Index. The index dropped to 88.6 points in June, down from 89.3 points in May. This decline is attributed to more pessimistic expectations for the future, although assessments of the current situation remained unchanged. The German economy continues to struggle with stagnation.

In the manufacturing sector, the business climate saw a decline following three consecutive months of improvement. Companies have become more sceptical about the months ahead, largely due to a decreasing order backlog. However, there was a slight increase in satisfaction with current business conditions.

The trade sector experienced a significant deterioration in business climate. Scepticism regarding future expectations increased markedly, and assessments of current business conditions were revised downward. This negative trend affected both wholesalers and retailers equally, as per the ifo Institute.

Fibre2Fashion News Desk (DP)