Business confidence slips further as Germany faces sluggish recovery

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German business morale deteriorated in July for the third month in a row, a survey showed on Tuesday, as analysts warned that Germany's economic engine was struggling to recover after slipping into recession earlier this year.

The Ifo institute said its business climate index stood at 87.3 following a revised reading of 88.6 in June. The drop was slightly bigger than forecast, with analysts polled by Reuters having expected a July reading of 88.0.

Europe's largest economy slipped into a technical recession in early 2023, defined by two consecutive quarters of contraction. Preliminary GDP data for the second quarter are expected on Friday. Carsten Brzeski, global head of macro at ING, said the German economy was feeling the effects of a weaker-than-hoped-for Chinese reopening, a looming U.S. recession and ongoing monetary policy tightening, ahead of another"The growing feeling that Germany is in for a longer period of subdued growth also seems to have reached German business," he said.

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German IFO Business Climate Index drops to 87.3 in July vs. 88.0 expectedThe headline German IFO Business Climate Index declined to 87.3 in July versus last month's 88.6 and the consensus forecast of 88.0. more to come ...
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