German business sentiment unexpectedly declined the most in more than four years in August in a sign that companies are waking up to the consequences Britain’s decision to quit the European Union will have on the economy.
The drop in the key Ifo business climate index enforces the concern company executives from Siemens AG to Thyssenkrupp AG have raised in the previous weeks: Political uncertainty related to Brexit and a range of other crises in the region threaten to damp so-far solid growth in Europe’s largest economy. Business sentiment in France, whose recovery ground to a halt in the second quarter, also slipped this month.
