The Ifo index fell for the third time in a row – “the situation is getting darker” – WELT

[ad_1]

a job German economy

The Ifo Index is down for the third time in a row – “The situation is getting darker”

The German economy is going through what is called a technical recession The German economy is going through what is called a technical recession

The German economy is going through what is called a technical recession

Source: dpa / Sebastian Gollnow

The Ifo business climate index fell for the third time in a row. Job expectations are declining and dissatisfaction with current work is increasing. With mechanical engineering, electrical engineering and chemical industries, the basic elements of the economy are also affected.

DrThe mood on the executive floors of the German economy soured again at the start of the second half of the year. The Ifo business climate fell in July to 87.3 points from 88.6 points in the previous month and thus for the third time in a row, the Munich Ifo Institute announced Tuesday in its survey of nearly 9,000 CEOs.

Experts polled by Reuters had expected only a drop to 88.0 points. “The situation in the German economy is getting darker,” said IFO President Clemens Fuest. The companies were notably dissatisfied with the current business in particular. Expectations have fallen again.

Read also

Germany's traditional industry is shrinking

According to the Ifo Institute, Germany is threatened by a summer recession. The head of the Ifo survey, Klaus Wollrabe, said on Tuesday that “the weak phase of the German economy is being extended” in light of a renewed decline in the business climate index. GDP is expected to decline in the current third quarter after almost stagnating in the spring.

Industry is weak

One cause of the misery is the persistent weakness in the industry. “Companies can better process existing orders because delivery bottlenecks are constantly decreasing,” Wallrab said. “But there are fewer new orders coming in.” There is hardly any glimmer of hope in the industry.

Read also

Meanwhile, the sectors of mechanical engineering, electrical engineering and chemical industries have been weakening for some time. Foreign demand is also somewhat negligible. “No momentum is expected from the export side,” said the IFO expert.

The German economy contracted at the end of 2022 and the beginning of 2023 compared to the previous quarter and has been in a flat ever since. Technical stagnation is called. According to the Bundesbank, the economy should have recovered slightly in the second quarter. However, according to a study, the risk of a recession rises in late summer. Suits Latest Purchasing Managers’ Index. This indicates that the economy has likely contracted given the decline in orders at the beginning of the second half of the year.

You can listen to WELT’s podcast here

To view embedded content, your revocable consent to the transfer and processing of personal data is required, since providers of embedded content as third-party providers require such consent [In diesem Zusammenhang können auch Nutzungsprofile (u.a. auf Basis von Cookie-IDs) gebildet und angereichert werden, auch außerhalb des EWR]. By setting the toggle switch to ON, you agree to this (which can be revoked at any time). This also includes your consent to the transfer of certain Personal Data to other countries, including the United States of America, in accordance with Article 49(1)(a) GDPR. You can find more information on this. You can withdraw your consent at any time via the switch and the Privacy Policy at the bottom of the page.

“It’s All in Stocks” is the daily stock snapshot from the WELT business editorial team. Every morning from 5 a.m. with the financial journalists from WELT. For stock market experts and beginners. Subscribe to the podcast at SpotifyAnd Apple PodcastAnd Amazon Music And Deezer. or directly via RSS feed.

[ad_2]

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *