Cold shower for German industry.
(Reading time: 3 - 5 minutes)
The ifo Business Climate Index for June shows a surprisingly significant decline in industry, which is so important for the private wealth stock market indicator. The index for business expectations in the manufacturing sector fell from minus 6.4 points to minus 12.3 points. This is the first decline since December 2023 and a clear damper on hopes for positive economic development in the second half of the year.
Why have company bosses suddenly become more pessimistic when the ifo Institute itself has just raised its economic forecast slightly and is now saying that the German economy is on course for recovery?
We suspect that two political developments have contributed significantly to this. One is the threat of tariffs on e-cars from...