The confidence of the German business world in the economy has fallen for 5 months

In Germany, business confidence in the economy deteriorated for the fifth consecutive month in September.

The Institute for Economic Research (Ifo), based in Munich, published the results of the September German Business Survey, carried out with the participation of approximately 9 thousand companies.

Thus, the Ifo index of confidence in the business environment in Germany, which was 85.8 points last month, decreased to 85.7 points in September due to the deterioration of future expectations of company managers and continued to fall by fifth consecutive month. The market expectation was that the index would drop to 85.2 points.

It is worth noting that the Ifo expectations index in Germany increased from 82.7 to 82.9 points in September, while the current situation index decreased from 89 to 88.7 points.

‘The German economy remains still’

The Ifo survey stated that there was a deterioration in expectations about the future of the manufacturing sector.

The president of the Ifo, Clemens Fuest, in his assessment of the matter stated that “the weather is cloudy” in the German economy and stated: “The German economy is stagnant.”

Meanwhile, the German economy has failed to grow for three consecutive quarters due to rising interest rates, a weak global economy and high inflation. While the economy contracted 0.4 percent in the final quarter of last year and 0.1 percent in the first quarter of the year, it failed to grow in the second quarter of the year.

For this year, the Ifo expects a contraction of the German economy of 0.4 percent and the Kiel Institute for the World Economy (IfW) expects a contraction of 0.5 percent.

According to International Monetary Fund (IMF) forecasts, Germany will be the only G7 country expected to contract this year. (AA)