Central Banks

German Business Expectations Fall in Setback to Rebound Hope

  • Ifo expectations dropped to 89 in June; economists saw 90.7
  • Economy ‘having difficulty overcoming stagnation,’ Fuest says

Clemens Fuest

Photographer: Christof Stache/AFP/Getty Images
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Germany’s business outlook worsened for the first time in five months — a sign that the gradual recovery in Europe’s biggest economy faces headwinds.

An expectations gauge by the Ifo institute fell to 89 in June from 90.3 in the previous months — defying analyst predictions for an improvement. A measure of current conditions held steady.