Confidence Continues To Collapse In Germany

lady sculpture lake germany

Photo: AP Images

The largest and one of the most financially sound economies in Europe continues to show cracks.The German IFO Business Climate index, a measure of confidence in the region, fell to 103.3 in July.

This is down from 105.3 in June.

The latest reading was worse than the 104.5 economists were looking for.

According to Bloomberg’s Linda Yueh, this is the third straight month of declines.  It’s also the lowest reading since March 2010.

The comes after yesterday’s disappointing Markit Flash PMI numbers, which indicated that Germany’s manufacturing and service sectors are contracting.

Here’s a chart from the IFO Institute.

ifo index

Photo: IFO Institute

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