Business sentiment slides in Germany for second month running

Frankfurt, Aug. 25, (dpa/GNA) – The mood in the German economy deteriorated in August for the second month in a row, according to a closely-watched indicator.

The ifo business climate index fell by 1.3 points to 99.4 points compared to the previous month, the Munich-based institute announced on Wednesday.

Analysts had expected a decline in what is one of the most important economic barometers for Germany, but had estimated a slightly higher 100.4 points in terms of their hopes for the future.

“Concerns are growing, particularly in the hospitality and tourism sectors,” ifo president Clemens Fuest said.
In contrast, companies assessed their current situation as slightly better than in the previous month.

However, supply bottlenecks for some industrial products and concerns about rising coronavirus infection figures are still weighing on the economy.
GNA