Business confidence in Germany worsened slightly in August as businesses grew more pessimistic due to rising costs and the threat of gas shortages.
The Ifo institute’s business climate index fell to 88.5 in August from a revised figure of 88.7 in July, the institute’s data showed.
Economists expected the index to reach 87.2 points.
“An ominous mood hangs over the German economy,” said Ifo president Clemens Faust.
German businesses were less satisfied with their current activities and strong pessimism about their prospects in the coming months is essentially unchanged.
The current situation indicator fell to 97.5 in August from 97.7 the previous month, while the gauge of business expectations fell to 80.3 from 80.4.
“Uncertainty among businesses remains high, and the economy as a whole is expected to contract in the third quarter,” Fuest said.
Source: Capital
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