Germany: Business confidence moderates more than expected in June
June 24, 2015
The business confidence index, elaborated by the Ifo Institute, moderated from May’s 108.5 to 107.4 in June. The reading came in below market expectations of a decrease to 108.1 and marked a four-month-low. June’s reading represented the second moderation after six months of rising business confidence.
According to the Institute, June’s print reflects that firms were less optimistic about future business development than in the previous month and regarding their current economic situations. Business climate in the manufacturing sector worsened on lower expectations for the upcoming months and a worse assessment of the current business situation. Sentiment also moderated in the wholesaling and the retailing sectors. By contrast, business climate in the construction sector improved for a third straight month on more positive expectations. Overall, the Ifo Institute commented that, “the outlook for the German economy is overcast.”