High spirits among German businesses have evaporated. The ifo Business Climate Index for Germany fell to 102.1 points in April from 103.3 points in March. The indicator for the current business situation fell and expectations also deteriorated. The German economy is slowing down.

In manufacturing the business climate deteriorated for the third consecutive month. Assessments of the current business situation declined but nevertheless remain at a high level. Business expectations dropped to their lowest ebb since August 2016. Capacity utilisation fell by 0.3 percentage points to 87.7 percent. However, it remains above its long-term average of 83.6 percent.