"Slow pace": IFO's business climate is somewhat clouded in July | message

The Ifo business climate index fell by 0.1 point to 101.7 points, according to the Ifo Institute of Munich after its monthly survey of about 9,000 executives. Economists surveyed by Dow Jones Newswires were expecting a somewhat stronger drop to 101.5 points.

"The German economy continues to expand at a slower pace," said Ifo President Clemens Fuest. The ifo index is the most important German economic barometer and is considered a reliable indicator for the development of the next six months.

The badessment index of the current situation of the surveyed companies increased in July from 0.1 to 105.3 points. The forecasts of the economists had reached a level of 104.7. The index of business expectations decreased by 0.3 point to 98.2 points. Economists surveyed were expecting a drop to 98.1 points.

In the manufacturing sector, the index declined for the sixth year in a row. The reason for this was significantly worse estimates of the situation of industrial companies, explained the institute. On the other hand, in the services sector, the business climate has improved. One of the reasons was the growing demand for services.

By Andreas Plecko

FRANKFURT (Dow Jones)

Sources of the image: ifo