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.
Sentiment among German companies deteriorated in June, with the ifo Business Climate Index dropping to 88.6 points from 89.3 in May.
The decline is due to more pessimistic future expectations, though current situation assessments remained unchanged.
Manufacturing saw a decline after three months of improvement, while the trade sector also saw deterioration.
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)