The president of the German research institute Ifo, Clemens Fuest, evaluated this Monday (25) that “Germany is on the verge of a recession”.
Earlier, Ifo reported that its German business sentiment index fell in July to 88.6 points, reaching the lowest level since June 2020, from 92.2 in the previous month.
“Sentiment in German business has cooled significantly,” Fuest said in a statement.
This month’s result was below the expectations of analysts consulted by the The Wall Street Journal, which predicted a drop in the indicator to 90.5 points. The June result was revised down slightly from 92.3 points originally.
Companies in Germany are expecting business to get much more difficult in the coming months and are also less satisfied with the current situation, added the institute’s president.
The Ifo’s so-called economic expectations sub-index dropped from 85.5 to 80.3 points over the same period. The current conditions sub-index decreased from 99.4 to 97.7 points.
Ifo’s monthly survey involves nearly 9,000 companies in the manufacturing, services, trade and construction sectors.
Source: CNN Brasil
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