By Maria Martinez
German business sentiment worsened in July amid an increase in coronavirus infections and supply woes, missing forecasts for an increase.
The Ifo business-climate index came in at 100.8 points in July compared with the 101.7 points registered in June, according to data from the Ifo Institute released Monday. The reading missed a forecast from economists polled by The Wall Street Journal, who expected the index to increase to 102.5.
“Supply bottlenecks and concerns over newly rising infection numbers are weighing on the German economy,” Clemens Fuest, president of the Ifo institute, said.
Companies evaluated their current business situations as somewhat better, but their expectations for the coming months were significantly less optimistic, Ifo said.
The measurement, which gauges firms’ current business situation, climbed to 100.4 in July from 99.7 in June. However, the business expectations index fell to 101.2 in July from 103.7 in June, when it reached its highest level in almost three years.
The Ifo index is based on a poll of about 9,000 companies in manufacturing, services, trade and construction.
Write to Maria Martinez at [email protected]