Frankfurt (Germany), June 24 (EFECOM).- Business confidence in Germany fell seven tenths in June, after remaining unchanged in May compared to the previous month, due to lower expectations due to the difficulties in overcoming economic stagnation .
As reported this Monday by the Economic Research Institute (Ifo), the business confidence index in Germany stood at 88.6 points in June, a figure lower than the 89.3 points in May.
This decline in confidence was due to the drop in expectations, which fell by more than one point, from 90.3 points in May to 89 in June, because the German economy “has difficulty overcoming stagnation.” .
On the other hand, the evaluation of the current situation remained unchanged compared to the previous month, at 88.3 points.
By sector, business confidence in manufacturing fell, after three consecutive increases, because companies were once again more skeptical about the future and especially worried about the order book, despite being more satisfied with the current situation.
Along these lines, the business climate in commerce “deteriorated considerably”, while skeptical sentiment increased notably and evaluations of the current business were corrected downwards, both for wholesalers and retailers.
On the other hand, the index rose in the services sector and construction.
In the first case, service providers assessed their situation as more positive and improved their expectations for the second semester, especially in the hotel sector.
For its part, the index rose in construction due to less pessimistic expectations, although businessmen assessed their current situation worse because the lack of orders continued to be “a fundamental problem.” EFECOM
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