By Xavier Fontdegloria
Business confidence in Germany worsened in June as companies in the manufacturing and retail sectors became more pessimistic due to rising costs and the threat of gas shortages.
The Ifo business climate index fell to 92.3 points in June from 93.0 points in May, Ifo Institute data showed on Friday. Economists surveyed by the Wall Street Journal expected the index to reach 92.5.
“The sentiment among German executives has clouded,” Ifo president Clemens Fuest said. German companies were a little less satisfied with their current business situation, while their expectations became markedly more pessimistic, he said.
The index of the current situation fell slightly to 99.3 in June from 99.6 in the previous month, while the indicator assessing the expectations of companies fell to 85.8 from 86.9 .
“Rising energy prices and the threat of gas shortages are a major concern for German companies,” Mr. Fuest.
The Ifo index is based on a survey of some 9,000 manufacturing, services, trade and construction companies.
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