German business sentiment deteriorates further in June - Ifo
German business sentiment deteriorated more than expected in June, according to a survey released on Monday by the Ifo Institute.
The business climate index fell to 88.5 from 91.5 in May, coming in below consensus expectations of 90.7.
The expectations index declined to 83.6 in June from 88.3 the month before - the lowest level since November 2022 - while the current situation index printed at 93.7, down from 94.8.
The manufacturing index fell to -9.9 in June from -0.6 in May, while the service sector gauge was 2.7, down from 6.8. The index for trade slipped to -20.2 from -19.1 and the construction index deteriorated to -20.1 from -18.5.
Ifo Institute president Clemens Fuest said: "Above all, the weakness in the manufacturing sector is steering the German economy into turbulent waters."
Capital Economics said: "The slump in the German Ifo, together with the drop in the PMIs, released on Friday, suggests that German GDP probably contracted for the third quarter in a row in Q2. We expect the economy to remain in recession throughout 2023."