German Ifo business climate dropped to 101.8 in June, down from 102.3, slightly higher than expectation of 101.7. Current assessment dropped to 105.1, down from 106.1 and missed expectation of 105.6. Expectations gauge was unchanged at 98.6, meeting consensus.
Ifo President Clemens Fuest noted in the release that companies were less satisfied with their current business situation while business expectations remained slightly optimistic. Nonetheless, “the tailwind enjoyed by the German economy is calming down.”
He also pointed out that the index “fell markedly in trade”. “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. Indicators dropped far more sharply in retailing than in wholesaling.”
