Germany's business sentiment weakens as ifo Index falls to 87.7

In manufacturing, the index declined. Companies assessed their current situation as slightly worse, and expectations became more cautious. New orders experienced another decline. Any glimmers of hope that had emerged among capital goods manufacturers in the previous month have faded, ifo Institute said in a press release.

In the service sector, the business climate deteriorated noticeably. Expectations have grown markedly more pessimistic, and the indicator fell to its lowest level since February. Companies also downgraded their assessments of the current situation. Sentiment deteriorated particularly in the transport and logistics sector.

In trade, the business climate worsened, driven by more pessimistic expectations. However, companies assessed the current situation somewhat more positively. The business climate index rose in retail but fell in wholesale, added the release.

ALCHEMPro News Desk (SG)