Germany – Ifo keeps falling
The Ifo business climate deteriorated further in August, falling from 87.0 to 86.6.
Commerzbank Economic Research
08/26/2024
More bad news for the German economy: the Ifo business climate fell from 87.0 to 86.6 in August, continuing the downward trend that began in the spring. This means that the indicator's increase in the first few months of this year has proved to be a false signal. A recovery of the German economy in the coming months is becoming increasingly unlikely.
A look at the sub-components shows that the decline in August is primarily due to an (even) worse assessment of the current situation. However, expectations have also deteriorated further, having already fallen significantly in recent months. They are now only slightly more positive than at the start of the year. While there have been ups and downs in expectations over the past two years, the assessment of the situation has shown a clear downward trend for almost three years.
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