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German Business Morale Falls

German Business Morale FallsGerman Business Morale Falls

German business confidence dropped in June, suggesting the mood among company executives in Europe’s biggest economy is darkening amid global trade war threats, Reuters reported. The Ifo economic institute Monday published its business climate index at 101.8, a drop from 102.3 last month. The index has now fallen in six of the last seven months and is at its lowest level for over a year. Current sentiment declined in all four sectors measured by the index—manufacturing, services, trade and construction. The index is based on survey responses from roughly 9,000 firms asked to give their assessments of the current business situation and their expectations for the next six months. The readings add to signs that Europe’s biggest economy is cooling after a strong 2017, though economists say a recession is not likely. The Ifo last week reported that it expects the German economy to grow by 1.8% this year, a significant downward revision from a previous forecast of 2.6%.

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