The confidence of German entrepreneurs in the economy fell again in July. This was reported by the Ifo research institute. It is the fourth month in a row that confidence has weakened.

Ifo’s confidence index, which reflects expectations for economic developments in the coming three to six months, came to 95.7 against a revised level of 97.5 in June. Economists generally predicted a level of 97.2. The Ifo survey is being conducted among around 9,000 companies.

The indicator has thus fallen to the lowest level in more than six years. Sentiment has been under pressure for some time due to global trade tensions and the weakening German economy. In the last eleven months there has been a fall in the Ifo index in ten months.

In a reaction, ING economist Carsten Brzeski warns that the German economy is currently at a dangerous intersection. The powerful insurance against a recession, namely domestic demand, is weakening, says the economist. According to Brzeski, it is doubtful whether domestic demand in Germany can pick up without external support, such as monetary stimulation or relaxation on the trade front.

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