Business climate noticeably declining in Germany

(Patria) - The climate in the German economy significantly worsened in June. The index of the Munich economic institute Ifo fell by three points compared to the previous month, to 88.5, Ifo announced on Monday.

This is the lowest level in more than half a year. Analysts had predicted a decline, but largely believed it would stop at 90.6 points, SEEbiz reports.

"Above all, the weakness of industry has led the German economy into troubled waters," said Ifo President Clemens Fist.

In the manufacturing industry, according to him, the mood of entrepreneurs has significantly worsened, but it has also weakened in service sectors, trade, and construction.

In Ifo's regular survey, 9,000 surveyed companies primarily expressed lower expectations for future business. This indicator fell by 4.7 points to 83.6.

They also assessed the current situation worse than in the May survey. However, this decline of 1.1 points to 93.7 points is still significantly more moderate.