IFO economist, Klaus Wohlrabe commented on Monday’s disappointing reading of German IFO business climate index, which fell to 94.3 in August and recorded its weakest reading since November 2012.
• German industrial sector is in a recession, the services sector is now following.
• There will be GDP stagnation at most in Q2 at most.
• The last time industrial companies demonstrated such pessimism was back in 2009.
• Latest developments in trade war not yet reflected by the latest survey.
• The business climate has improved in the auto sector but has significantly worsened in engineering, chemicals and electrics.