German business confidence deteriorated in June, a survey showed on Monday, suggesting the mood among company executives in Europe's biggest economy is darkening in light of the threat of a global trade war.
The Munich-based Ifo economic institute said its business climate index fell to 101.8, falling slightly less than predicted in a Reuters consensus forecast of 101.7.
Trade Forecast
The institute said that the index fell markedly in the trade sector, as 'companies downwardly revised their very good assessments of the current business situation. Their business outlook turned slightly pessimistic for the first time since February 2015.'
In terms of retail specifically, 'indicators dropped far more sharply in retailing than in wholesaling', the Ifo said.
Manufacturing, too, fell due to 'poorer assessments' of the current business situation.
'Manufacturers’ business expectations, by contrast, remained slightly optimistic. More manufacturers plan to ramp up production in the months ahead,' the Ifo said.
"The tailwind enjoyed by the German economy is calming down," Ifo chief Clemens Fuest commented.
News by Reuters, edited by ESM. Additional reporting by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
