Executives in Germany continue to look to the future with pessimism.
(Photo: dpa)
Reuters The mood in the executive floors of the German economy deteriorated slightly again in August. The Ifo business climate index fell to 88.5 points from 88.7 points in the previous month and thus for the third time in a row, as the Munich Ifo Institute announced on Thursday in its survey of around 9,000 executives. Economists polled by Reuters had expected a drop to 86.8 points.
Those surveyed were somewhat more skeptical than recently about their business situation and prospects. “Uncertainty among companies remains high,” said Ifo President Clemens Fuest. “Economic output is likely to shrink in the third quarter.”
In the spring, the German economy achieved small growth of 0.1 percent despite the consequences of the Ukraine war. But the prospects are bleak: The Bundesbank expects economic output to “roughly stand still” in the summer and that there could be a recession in the winter half-year, also as a result of the gas crisis.