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German business confidence declined in July after rising for several months, the Munich-based Ifo Institute said Monday, with the headline index slipping to 100.8, down from 101.7 seen in June, driven by a decrease of expectations to a 3-month low of 101.2. Current conditions on the other hand rose to 100.4.
"Supply bottlenecks and concerns over newly rising infection numbers are weighing on the German economy," the report noted. Expectations in the manufacturing sector fell in July as firms noted concerns about scarcity of intermediate products and a lack of skilled workers. Similarly, expectations in the service and trade sector declined as well as supply bottlenecks create a problem.
Source: Ifo Institute