Germany’s business sentiment index fell from 88.6 points in August to 84.3 points in September, reaching the lowest level since May 2020, amid the energy crisis afflicting Europe, according to a survey released on Monday. (26) by the German Ifo Institute.
This month’s result was well below the expectations of analysts consulted by the The Wall Street Journalwhich predicted a drop in the indicator to 87.1 points.
The August reading was revised up slightly from 88.5 points originally.
The Ifo’s so-called economic expectations sub-index dropped from 80.5 to 75.2 points over the same period. The current conditions sub-index decreased from 97.5 to 94.5 points.
“The German economy is entering a recession,” commented Ifo President Clemens Fuest.
Companies rated current business as clearly worse and pessimism about the coming months grew, he said. Ifo’s monthly survey involves nearly 9,000 companies in the manufacturing, services, trade and construction sectors.
Source: CNN Brasil
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