Brexit is already conduct business in Germany – TVI24

The German business sentiment deteriorated in August, with the biggest monthly drop since the peak of the sovereign debt crisis in the euro zone in 2012, according to the economic institute German Ifo, a sign that the Brexit strongly affected the confidence of company executives.

the Ifo, based in Munich, said the business climate index, based on a monthly survey of about 7,000 German companies, fell to 106.2 in August from 108.3 in July.

the lowest value since February and the sharpest monthly decline since the spring of 2012. the value of August was also more weaker than the forecast of the Reuters consensus pointing to 108.5.

“business confidence in Germany has clearly gotten worse,” said Clemens Fuest, director of the Ifo said in a statement. “The German economy has entered a decline in the summer,” he said.

“The Brexit has a greater effect now,” said Klaus Wohlrabe, Ifo economist, told Reuters, adding that business expectations had deteriorated in most of the sectors that have strong ties to the British market, as chemical and automobile construction.