SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Dark prospects for the German economy

The German business climate is the worst since February and the recovery in Europe's largest economy has stalled, shows a monthly index from the German analysis institute Ifo. "A crisis situation", says the Ifo chief in a comment.

» Updated: 07 September 2024, 01:12

» Published: 26 August 2024

Dark prospects for the German economy
Photo: Martin Meissner AP/TT

Confidence in the future sank according to Ifo to 86.8 in August, down from revised 87.0 the previous month. The decline was certainly somewhat smaller than expected, but it comes with a sub-index for the view of the current situation in the German economy, which is also falling.

"The German economy is increasingly falling into a crisis situation," says Ifo chief Clemens Fuest according to a press release.

Expectations for economic development are pointing downwards both in the service sector and in manufacturing, according to Ifo's measurements.

The German economy contracted by 0.1 percent during the second quarter, and the so-called purchasing managers' index for August remained below the 50-line, indicating decreased activity in the economy.

An index from the Zew Institute fell earlier in August to its lowest level since January, and the German central bank Bundesbank – part of the European Central Bank (ECB) – has warned of persistent weak development for manufacturing as the German industry is currently in a tough competitive situation.

The ECB has flagged that the key interest rate in the eurozone may be lowered in September following the cut in June.

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Took a tough stance on crypto companies - resigns
1 MIN READ

Took a tough stance on crypto companies - resigns

Ingvar Carlsson on PG: "A very loyal friend"
2 MIN READ

Ingvar Carlsson on PG: "A very loyal friend"

No Wage Guarantee in American Process
1 MIN READ

No Wage Guarantee in American Process

He became "PG" to the entire Swedish people
3 MIN READ

He became "PG" to the entire Swedish people

PG Gyllenhammar has died: "meant a lot"
1 MIN READ

PG Gyllenhammar has died: "meant a lot"

Unstable US stock market ends on a plus
1 MIN READ

Unstable US stock market ends on a plus

Temu's owner shows its hand
1 MIN READ

Temu's owner shows its hand

Nvidia rises in pre-trading on Wall Street
1 MIN READ

Nvidia rises in pre-trading on Wall Street

Reconstruction in the USA to save Northvolt
3 MIN READ

Reconstruction in the USA to save Northvolt

Northvolt: Negotiations are still ongoing
3 MIN READ

Northvolt: Negotiations are still ongoing

Higher Compensation for Job Interviews in Another Location
1 MIN READ

Higher Compensation for Job Interviews in Another Location

Vehicle Giant Warns of Challenges in 2025
1 MIN READ

Vehicle Giant Warns of Challenges in 2025

Unchanged interest rate in Turkey
1 MIN READ

Unchanged interest rate in Turkey

Trump anxiety in the EU over US tariffs
3 MIN READ

Trump anxiety in the EU over US tariffs

Weak demand for scrapping premium
1 MIN READ

Weak demand for scrapping premium

E-fuel company takes in half a billion
1 MIN READ

E-fuel company takes in half a billion

New Report Boost for AI Giant Nvidia's Share
2 MIN READ

New Report Boost for AI Giant Nvidia's Share

Stockholm Stock Exchange Turned Upwards
1 MIN READ

Stockholm Stock Exchange Turned Upwards

Bitcoin closer to the dream limit
1 MIN READ

Bitcoin closer to the dream limit

Higher fee to stop burning of plastic
2 MIN READ

Higher fee to stop burning of plastic