FOREX TradingCharts.com

Financial News: German Ifo Business Sentiment Deteriorates In June

German Ifo Business Sentiment Deteriorates In June

06/24/2022 - 08:27:00 (RTTNews)

(RTTNews) - Germany's business sentiment worsened more than expected in June as the war in Ukraine, high inflation and supply chain disruptions triggered fears of recession, survey results from the ifo Institute showed on Friday.

After rising for two months, the business confidence index dropped to 92.3 in June from 93.0 in the previous month. The index was forecast to fall marginally to 92.9.

Companies were somewhat less satisfied with their current business situation and their expectations turned markedly more pessimistic.

The current situation index fell to 99.3 from 99.6 but remained above the expected reading of 99.1.

At the same time, the expectations index eased unexpectedly to 85.8 from 86.9 in the previous month. Economists had forecast the index to rise to 87.4.

Rising energy prices and the threat of gas shortages are of great concern to German business, ifo Institute President Clemens Fuest said.

With inflation set to remain high and the country's gas supply looking increasingly precarious, the chances of the country falling into recession this year have increased considerably, Capital Economics economist Michael Tran said.

ING economist Carsten Brzeski said the German economy will definitely not plunge as it did during the 2020 lockdowns.

However, consumer confidence is already in clear recession territory and today's Ifo reading, as well as yesterday's PMI reading, both suggest that the manufacturing sector is quickly following suit, Brzeski noted.

The flash Purchasing Managers' survey this week showed that Germany's private sector logged its slowest expansion, with growth moderating sharply to the weakest since the marginal contraction seen last December.

At 51.3, the composite output index fell for the fourth month in a row in June, from 53.7 in May. The factory PMI came in at 52.0 versus 54.8 in the previous month.

Among sectors, business confidence weakened considerably in the manufacturing segment, the ifo survey showed. Manufacturers assessed the current situation as slightly worse, while they were significantly more pessimistic about the second half of this year.

On the other hand, confidence improved clearly in the service sector due to markedly less skeptical expectations. Moreover, they assessed the current situation as a little better.

In construction, business confidence improved, while the index for trade worsened in June.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2022 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Australia Unemployment Data Due On Thursday (55 min(s), 28 sec(s) ago)
(RTTNews) - Australia will on Thursday release July figures for unemployment, highlighting a light ...Full Story»

Fed Minutes Reaffirm Plans To Continue Raising Interest Rates (04 hr(s), 04 min(s), 28 sec(s) ago)
(RTTNews) - The Federal Reserve released the minutes of its July monetary policy meeting on Wednes ...Full Story»

U.S. Business Inventories Jump In Line With Estimates In June (08 hr(s), 04 min(s), 28 sec(s) ago)
(RTTNews) - The Commerce Department released a report on Wednesday showing a continued surge in U. ...Full Story»

Finland GDP Growth Improves Slightly In Q2 (08 hr(s), 25 min(s), 28 sec(s) ago)
(RTTNews) - Note: Story updated to reflect growth trend in the second quarter Finland's ...Full Story»

U.S. Retail Sales Unchanged Amid Pullbacks In Gas, Auto Sales (09 hr(s), 20 min(s), 28 sec(s) ago)
(RTTNews) - With pullbacks in gasoline and auto sales offsetting strength in other areas, the Comm ...Full Story»

Norway Consumer Confidence At Record Low (09 hr(s), 31 min(s), 28 sec(s) ago)
(RTTNews) - Norwegian consumer confidence worsened to a record low in the third quarter amid risin ...Full Story»

Singapore Non-Oil Exports Climb 1.4% In July (09 hr(s), 40 min(s), 28 sec(s) ago)
(RTTNews) - Non-oil domestic exports in Singapore were up 1.4 percent on month in July, Enterprise ...Full Story»

Portugal PPI Inflation Eases In July (10 hr(s), 07 min(s), 28 sec(s) ago)
(RTTNews) - Portugal's producer price inflation slowed in July, after accelerating in the prev ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Australia Unemployment Data Due On Thursday

08/17/2022 - 18:00 PM (RTTNews)
(RTTNews) - Australia will on Thursday release July figures for unemployment, highlighting a light ...Full Story>>

Fed Minutes Reaffirm Plans To Continue Raising Interest Rates

08/17/2022 - 14:51 PM (RTTNews)
(RTTNews) - The Federal Reserve released the minutes of its July monetary policy meeting on Wednes ...Full Story>>

U.S. Business Inventories Jump In Line With Estimates In June

08/17/2022 - 10:51 AM (RTTNews)
(RTTNews) - The Commerce Department released a report on Wednesday showing a continued surge in U. ...Full Story>>

Finland GDP Growth Improves Slightly In Q2

08/17/2022 - 10:30 AM (RTTNews)
(RTTNews) - Note: Story updated to reflect growth trend in the second quarter Finland's ...Full Story>>

U.S. Retail Sales Unchanged Amid Pullbacks In Gas, Auto Sales

08/17/2022 - 09:35 AM (RTTNews)
(RTTNews) - With pullbacks in gasoline and auto sales offsetting strength in other areas, the Comm ...Full Story>>

Do not sell my personal information

Copyright © 2022. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.