German business confidence fell sharply in July, with both current and future indicators of sentiment taking a nosedive, according to the ifo Institute, whose president warned that the country now stands “on the cusp of a recession.”
The overall index fell to 88.6 points in July, down from 92.2 points in June, the lowest since June 2020, the German research and policy institute said on July 25.
The ifo Business Climate Index is based on a survey of around 9,000 managers across various manufacturing and service industries in Germany.
German firms expressed a drop in confidence regarding their current situation and they expect business to become “much more difficult” over the next several months, ifo President Clemens Fuest said in a statement….