German business climate index falls, halts six-month gain streak

In manufacturing, the business climate was much worse, with expectations seeing a particularly steep decline—at 6.3 in April and -0.3 in May. This was the largest decrease since March 2022 after the start of the war in Ukraine. The deterioration in expectations can be seen in nearly all industries. Managers also evaluated the current situation as less positive and incoming orders fell, according to the ifo Business Survey, May 2023.

The trade sector index saw a major decline at -10.7 in April and -19.1 in May. The indicator of the current situation has returned to negative territory after five months and scepticism regarding expectations made a marked increase. Sentiment deteriorated especially in wholesale.

ALCHEMPro News Desk (NB)