ifo survey: Downturn in German economy still not finding a foothold

The German economy is coming under increasing pressure, and the situation is becoming increasingly uncomfortable, especially in industry. Brexit, the trade dispute and generally uncertain prospects are placing an increasing burden on German industrial companies. And the domestic economy is also suffering. The previously very stable service sector is now also feeling the effects of the economic slowdown. Only the construction sector, largely unaffected by the difficulties of other sectors of the economy, can enjoy the sustained boom.

The ifo Business Climate Index fell from 97.5 to 95.7 points in July. The companies were less satisfied with their current business situation, and they are even more sceptical about their future business development. Business expectations for the coming three months in the current month have even fallen to their lowest level for more than ten years.

However, there are still no signs of a crisis in Germany, even though growth has cooled down considerably. But if the general political weather situation, in particular, continues to deteriorate, the first recession since the Euro crisis of 2012/2013 can hardly be averted.

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