The mood in the German economy deteriorated again in July. The Ifo business climate index fell by 1.3 points to 87.3 points compared to the previous month, as the Ifo Institute announced on Tuesday in Munich. It is the third decline in a row in the much-noticed economic barometer. Economists usually interpret three declines in a row as an economic turning point.
On average, analysts had expected a smaller decline to 88.0 points. “The situation in the German economy is getting darker,” commented Ifo President Clemens Fuest. The current situation was rated significantly worse by the approximately 9,000 companies surveyed, while future business prospects were only slightly weaker. The business climate clouded over in all areas under review. In the construction industry, the indicator fell to its lowest level since the beginning of 2010. The industry has been suffering from the sharp rise in interest rates and high construction costs for a long time.