DECLINE IS A CHOICE: Germany’s business climate hits crisis-like levels as the DAX falters.

This decline was driven by deteriorating current business conditions and increasingly pessimistic future outlooks.

“The German economy is increasingly falling into crisis,” remarked Clemens Fuest, President of the ifo Institute.

Manufacturers reported significantly lower satisfaction with the present situation, while service-oriented businesses expressed growing scepticism about the future. Manufacturing sentiment fell to its lowest since early 2020, and the services sector hit its lowest point since February 2024.

Recent private sector surveys also indicated a downturn in August, with employment shrinking at the fastest rate in four years.

While that Euronews report didn’t mention energy prices, this story from like week put them front and center: High energy prices are forcing German manufacturers to consider cutting production.