Iran war weighs on German business sentiment - Ifo

(Sharecast News) - German business sentiment deteriorated in April to its worst level since May 2020 as the war in Iran took its toll, according to a survey released on Friday by the Ifo Institute. The business climate index fell to 84.4 from 86.3 in March, while expectations index declined to 83.3 from 85.9.

The current situation index printed at 85.4 in April, down from 86.7 the month before.

The manufacturing index declined to -15.5 this month from -14.4 in March, while the service sector gauge slid to -11.0 from -5.1.

The index for trade fell to -32.6 in April from -24.6 in March, while the construction gauge came in at -24.0, down from -15.0.

Ifo Institute president Clemens Fuest said: "Companies are considerably more pessimistic about the coming months. They also assessed their current situation as worse. The German economy is being hit hard by the Iran crisis."