By Stelios Orphanides
Business confidence in Germany fell this month as more companies in Europe’s largest economy assessed both their current situation and their expectations more poorly compared to July, the German Ifo Institute said.
German manufacturers, primarily in chemical and electrical industries, were less happy with their current business situation while their expectations were more pessimistic and fell below the long-term average on declining orders, Ifo said.
The business climate in Germany also deteriorated among wholesale and retail companies in August with distributors saying they were less satisfied compared to July and overall expectations showing “signs of scepticism,” Ifo said. “The decline in retailing is primarily attributable to food and beverages,” it added.
On the other hand, construction companies remained upbeat which reflected in “record level” business climate, Ifo said. The reasons for optimism among constructions companies have to do with “very good assessments of the current business situations,” even though somewhat weakened, combined with “slightly more optimism” for the coming months.
The performance of the German economy is significant for Cyprus’s shipping industry, which directly accounts for more than 5 per cent of the economy.