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Manufacturing Climate Index in Germany Declines in July
Jul 22, 2011
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The Ifo Business Climate for German industry and trade worsened in July after showing improvement in June, according to a report from Hans-Werner Sinn, president of the Ifo Institute for Economic Research at the University of Munich. He said that companies are less satisfied with the business situation now, but also noted that their assessments are still as favorable as they were in the Spring months of 2011.

The overall Trade and Industry index balance (seasonally adjusted) stands at 18.1 in July 2011, down from 21.0 in June.

The Manufacturing Index balance, also seasonally adjusted, was at 23.4 in July 2011, down from 27.7 in June.

The business climate index in German manufacturing has fallen, with expectations clearly weakening. German manufacturers anticipate lower growth in export business than they their expectation in previous months. Capacity utilization is somewhat higher than in the spring. Manufacturing firms still plan to hire additional personnel.

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