By Ed Frankl
Business sentiment in Germany sank for the first time in four months, according to a closely watched survey, offering further evidence that the economy is mired in a recession.
The Ifo business-climate index fell slightly to 86.4 in December from a revised 87.2 in November, data from the Ifo Institute showed Monday.
The reading was below expectations of 87.7 from economists polled by The Wall Street Journal.
Companies were less satisfied with their current business, while also more skeptical about the situation in the first half of 2024, according to Clemens Fuest, president of the Ifo Institute.
“As the year draws to a close, the German economy remains weak,” he added.
Germany’s central bank, the Bundesbank, last week cut its growth forecasts for the next two years, alongside expecting the economy to contract in the final three months of 2023. Official data confirmed that gross domestic product declined 0.1% in the third quarter, suggesting Europe’s largest economy is now in a recession.
Write to Ed Frankl at [email protected]
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