The sun sets behind the sky above Frankfurt, Germany, July 5, 2022. REUTERS/Kai Pfaffenbach
Berlin: July, 25, 2014 (Himalo) – Business sentiment in Germany fell more than expected in July, according to the Ifo business sentiment survey, as the institute said higher energy prices and gas shortages. faced by the largest economy in Europe to continue. decline.
The closely watched Ifo institute’s business climate index fell to 88.6, the lowest in more than two years and below the 90.2 forecast by Reuters news agency. June’s reading was slightly revised up to 92.2.
“The recession is knocking on the door. That can’t be decided from now on,” said Ifo survey chief Klaus Wohlrabe.
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Germany is facing a gas crisis not seen in generations this winter after a sharp drop in supplies from Russia, whose president, Vladimir Putin, has been accused by the West of securing energy in response to anti-war sanctions. To see also : From a travel hobby to a highly profitable employment-providing travel company with the founder and CEO of Exclusive Travel Group Ltd., Jerome Tomlinson.. Ukraine.
Russia said it was conducting a “special military operation” there to fight the nationalists.
Russia this month shut down the Nord Stream 1 gas pipeline to Germany through the Baltic Sea bed for a 10-day maintenance period that some fear could be extended. Read more
Filling resumed on Thursday, but only at 40% of capacity.
Wohlrabe told Reuters that if German gas prices continue at that level “there will be no decline.”
However, Germany’s gas network regulator said on Friday that, if gas continues to be piped at only 40%, the country will need to take “further steps” to reach the 90% storage capacity target. prevent winter. dividend.
The government has said it will prioritize residents over the corporate sector in the event of a dividend, and on Monday the Ifo index, which surveyed about 9,000 companies, showed business prospects to increase significantly in the coming months.
“The Ifo business climate index, like the purchasing managers’ index, now clearly points to a slowdown in the German economy,” said Commerzbank economic analyst Jorge Kraemer.
“How bad it is unfortunately in Putin’s hands.”
S&P Global’s Flash Index of Purchasing Managers (PM) for German services and its manufacturing index both fell to 49.2 in July, data showed on Friday, below analysts’ forecasts that they would be above the 50 mark that separates growth from contraction. Read more
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Reported by Rachel More and Miranda Murray; Editing by John Stonestreet
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