The improvement in economic sentiment in Germany is not reflected in manufacturing and construction
The outlook for Germany's manufacturing and construction industries worsened, despite the fact that economic sentiment improved overall in August.
The IFO Institute for Economic Research found that sentiment among companies in Germany improved in August, albeit very slightly, thanks to the ifo business climate index. The index rose to 89.0 points from 88.6 points in July. However, in the manufacturing industry, the index declined slightly in this segment.
In construction, the index declined slightly in August after many months of stability, as companies expressed less satisfaction with the current situation.
The gloomy mood in manufacturing and construction is widely confirmed in the steel industry. As the manager of one of the service centers told Callanish, "We have the worst summer since the mid-1980s, when we started[operations]."
Meanwhile, Germany's GDP fell more than expected in the second quarter, according to Callanish from the federal statistical office Destatis. The indicator decreased by 0.3% compared to the first quarter after adjusting for price, seasonal and calendar fluctuations.
Thus, the decline in economic indicators was 0.2 percentage points more than reported at the end of July. In the manufacturing industry, in particular, in the steel industry, the indicators turned out to be worse than initially expected. According to new data, June production in the manufacturing industry and, in particular, in the construction industry, did not meet expectations, Destatis notes.
Christian Kel Germany
Kallanish.com