German ifo Business Climate dropped to 94.3 in August, down from 95.7 and missed expectation of 95.0. That’s also the lowest level since November 2012. Expectations Index dropped to 91.3, down from 92.2 and missed expectation of 91.8. Current Assessment Index dropped to 97.3, down from 99.4 and missed expectation of 98.8.

Clemens Fuest, President of the ifo Institute, said: “Companies were once again much less satisfied with their current business situation. Pessimism regarding the coming months also increased. There are ever more indications of a recession in Germany.”

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Looking at some details, Manufacturing Index dropped from -4.3 to -6.1. And “the last time that industrial companies demonstrated such pessimism was in the crisis year of 2009. Not a single ray of light was to be seen in any of Germany’s key industries.” Service Sector Index dropped from 18.0 to 13.0. Trade Index dropped from 1.4 to -2.4. Construction Index dropped from 23.1 to 21.4.

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