German business confidence weakens to 6-month low in June

Germany’s business climate index worsened to a 6-month low in June, according to data from a Munich-based research institute on Monday.

The Ifo Business Climate Index decreased for the second consecutive month to 88.5 points in June from 91.5 points in May, well below the market forecast of 90.7 points.

“Expectations were markedly pessimistic and companies’ assessments of their current situations were worse. Above all, the weakness in the manufacturing sector is steering the German economy into turbulent waters,” Clemens Fuest, president of Ifo Institute for Economic Research, said.

The Ifo Business Expectations Index dove to 83.6 this month, down from 88.3 in May.

By industry, sentiment weakened among manufacturers to minus 9.9 in June, service providers to 2.7, traders to minus 20.2 and constructors to minus 20.1.