ZURICH (MaceNews) – German businesses were a bit more pessimistic in June than a month ago, as their view of both current conditions and their expectations for future developments were judged more negatively.
The Ifo business climate index fell to 92.3 in June from 93.0 the previous month. Economists had expected a slight drop to 92.8, according to the median of a survey of economists’ forecasts from Econoday.
“Rising energy prices and the threat of gas shortages are of great concern to German business,” according to Clemens Fuest, President of the Ifo Institute.
Current conditions fell, although not as much as had been expected in the Econoday median. The component fell to 99.3 in June from 99.6 in May, while the median expectation was 98.9.
Conversely, expectations were glummer than expected as seen by the drop in the outlook for the next six months to 85.8 from 86.9 the previous month. Economists had expected conditions to improve to a reading of 87.3.