The business outlook in Europe’s largest economy continued to deteriorate in July and fell in the third month.
The confidence index of the Munich-based IFO Institute fell from 88.5 to 87.3 in July. Expectation was 88.
The current conditions index also decreased from 93.7 to 91.3.
IFO President Clemens Fuest stated that the outlook for the German economy is gloomy and said, “Companies are not satisfied with their current activities”.
In Germany, which has been struggling with economic difficulties due to the effect of the Russia-Ukraine war after the pandemic, the manufacturing sector in particular is performing poorly.
The data released by S&P Global yesterday showed that the manufacturing PMI index in the country continued to shrink, which increased the recession expectations. While the European Central Bank is expected to continue to increase interest rates at its meeting on Thursday, it is stated that the problems in the country’s economy may increase.
Inflation in Germany rose to 6.8 percent annually in June after slowing down for three consecutive months.