German business sentiment slips marginally in August following six straight monthly rises, as the Ifo comes in at 115.9 points versus July’s record high of 116.0 points.
The drop is being attributed to the strengthening of the euro (€1.1804) over the last few months, fresh geopolitical concerns with the US-North Korean conflict and fading signs of any imminent investment boom in the U.S.
The best explanation for the drop is simply a small technical correction after three record-highs in a row.
German companies were less upbeat about their current situation, but their short-term business outlook improved further, according to the Ifo’s monthly survey of about 7,000 companies.
Germany’s statistics body said earlier Friday that the economy grew at an annualized rate of 2.5% in the second quarter, propelled by corporate investment and private consumption.
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