The Ifo Institute's survey showed that sentiment among the German companies worsened again in September, recording the 5th decline in a row and reaching its lowest level since January.
According to the report, the Ifo business climate index fell to 85.4 from 86.6 in August. Economists had expected a decline to 86.0. The details of the report showed that the current situation sub-index fell to 84.4 from 86.5 in August, while economists also expected a drop to 86.1. Meanwhile, the expectations index, which measures the six-month outlook from the business perspective, fell to 86.3 from 86.8 last month. Consensus estimates also suggested that the index would drop to 86.3 points. Last month, the Ifo Institute said that the German economy is stuck in crisis, with both cyclical and structural factors having a negative impact. "The price-adjusted GDP will probably only stagnate this year. A gradual recovery is likely to set in over the next two years, with economic output increasing by 0.9% and 1.5% respectively," the Ifo Institute said.