German business confidence continues to decline

By Sahika Malkoc

ISTANBUL (AA) - German business confidence fell to 86.6 points in August due to increased pessimism among firms and a worsening assessment of their current position, while the crisis in the German economy deepened.

The Ifo Business Climate Index, starting its decline in June, fell to 86.6 points from 87 in July, while sentiment among companies in Germany is on a downward trend.

Germany's business climate index declined to a three-month low in August, according to data from a Munich-based research institute on Monday.

The Ifo Business Expectations Index dropped to 86.8 this month, down from July’s 87.0.

The German economy is increasingly entering a crisis, said Clemens Fuest, the head of the Ifo Institute for Economic Research.

Meanwhile, in the service sector, the business climate declined to 1.3.

In trade, the business climate fell slightly to 27.4, while satisfaction with the business situation in construction remained stable.