German business sentiment drops in July as economic crisis deepens

The German economy is stuck in crisis, the ifo Institute said in a press release.

In the manufacturing sector, the business climate has fallen substantially. Assessments of the current situation have worsened considerably, and expectations for the coming months have also declined. Order backlogs have decreased, and capacity utilization has dropped to 77.5 per cent, which is 6 percentage points below the long-term mean.

The trade sector is also experiencing a decline in business climate. Companies are less satisfied with their current business, with retailers being particularly affected. There is rising uncertainty and doubt about the months ahead among businesses in this sector.

ALCHEMPro News Desk (KD)