BERLIN, Aug. 26 (Xinhua) -- Business confidence among companies in Germany continued to decline in August, with the ifo business climate index falling to its lowest level in six months.
According to data released by the Munich-based economic institute on Monday, the index, which measures companies' satisfaction with their current business conditions and future expectations, dropped to 86.6 points in August, down from 87 points in the previous month. This marks the third consecutive month of decline.
The manufacturing sector, in particular, faced significant challenges, as companies reported a sharp deterioration in their mood. Manufacturers were much less satisfied with their current business situation and their expectations for the future have fallen to the lowest levels since February, said ifo. Many reported declining order backlogs, resulting from sluggish global demand for industrial products.
In contrast, the business climate in the trade sector saw an uptick in August, following two months of decline. The index for the construction sector remained stable, while the service sector experienced a downturn, driven by growing pessimism about future business prospects.
Commenting on the August decline, ifo President Clemens Fuest noted the sentiment among 9,000 companies surveyed is on a downward trend. "The German economy is increasingly falling into crisis," he said.
In an interview with the German newspaper Handelsblatt on Saturday, Fuest emphasized that Germany's economic performance ranks the last among major industrial countries. Low levels of investment and private consumption in Germany are offering little impetus for its economic recovery in short term, he noted.
