Germany: Business Expectations Fall for the Third Continuous Time

The climate in her continued to deteriorate in August 2024, according to a publication by Handelsblatt. In particular, the business climate Ifo, the most important barometer for the economy in Germany, retreated to 88.6 units from 88.0 units last month, according to the Munich-based Ifo Institute survey, to about 9,000 executives today (26.8.2024). This is the third reduction in the series. Experts asked by Reuters expected even a fall to 86.0 units. The companies were more pessimistic about their current business situation and prospects for the next few months than previously. “The German economy is facing a crisis,” said Ifo Clemens Fiest’s president. Recently, market managers’ survey of the local private sector had already put a strong brake on hopes of recovery: The barometer retreated even further below the 50-unit growth limit in August, S&P Global recently announced. After a 0.2% increase at the beginning of the year, the German gross domestic product (GDP) shrunk by 0.1% between April and June compared to the previous quarter due to the decrease in investments. However, the Bundesbank is not currently expecting a recession, but rather a slight increase in GDP in the current summer quarter.