Germany: bad economic climate. Companies fear the energy crisis

Bad weather, economic, in Germany: The Ifo Business Climate indicator for Germany fell to 92.3 in June 2022 from a three-month high of 93 in the previous month, below market expectations of 92.9 , as the threat of gas shortages is of great concern to the German economy. The current situation index fell to 99.3 in June from 99.6 in the previous month, while the indicator that assesses companies' expectations fell to 85.8 from 86.9. Manufacturing companies have rated the current situation as slightly less good and are much more pessimistic about the second half of the year.

There are several industrial sectors that are gripped by pessimism. The chemical industry is very alarmed by the energy situation, because it is heavily dependent on natural gas. In commerce, businesses are far less satisfied with their current situation and their expectations index has fallen to its lowest level since April 2020. Wholesalers and retailers are equally concerned when they look to the next few months. On the other hand, the business climate continued to rise in the construction and service sectors, two sectors that are far less dependent on imported energy.

In Germany he now sees with some clarity how he will go towards an energy crisis next winter. Economy Minister Habeck has said this openly, and the German newspapers now take the measure for certain, that the German economic environment can only be negative. The German economic system risks a severe blow, but don't worry: the Italian government will find a way to sacrifice our economy and send the gas we will store in Berlin. After all, the colonies are needed in these moments.

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This is a machine translation of a post published on Scenari Economici at the URL on Sat, 25 Jun 2022 09:00:22 +0000.