Germany Faces Grim Outlook as Business Confidence Worsens

  • Ifo business climate index fell to 85.7 from 87.4; est. 86.8
  • Economic output stalled in second quarter amid export slump
Shoppers on Marienplatz in Munich, Germany.Photographer: Michaela Rehle/Bloomberg
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Business confidence in Germany took another hit in August, despite the economy just exiting a recession in the second quarter.

The Ifo institute’s sentiment gauge dropped to 85.7 from a revised 87.4 the previous month, falling short of the median estimate in a Bloomberg survey. A separate report confirmed earlier Friday that gross domestic product stagnated in the three months through June, weighed down by trade.