German Business Morale Drops

Fears of a German economic slowdown were further heightened on Monday, as a key business survey fell short of analyst expectations.  The Ifo Business Climate index, which measures German business sentiment, showed signs of continued weakness in August, falling for the fourth consecutive month.

The index slipped to 106.3 in August, down from 108.0 in July and missing analyst expectations of 107.0.  “The German economy continues to lose steam,” Hans-Werner Sinn, the president of the Ifo Institute, said in a statement, adding that this month’s reading marked the index’s lowest level since July 2013.

Ifo economist and deputy director Klaus Wohlrabe told Reuters that domestic consumption in the country remained solid, but warned that the Ukraine crisis was a “burdensome factor” for the country’s economy.

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.