Reuters reports that an Ifo institute survey showed that German business morale fell unexpectedly in July on continuing supply chain worries and amid rising coronavirus infections.

Business climate index fell to 100.8 from a revised figure of 101.7 in June. Economists had expected an increase to 102.1. Meanwhile, the Current Economic Assessment arrived at 100.4 points in the reported month as compared to last month's 99.7 and 101.6 anticipated. The Expectations Index – indicating firms’ projections for the next six months, dropped sharply to 101.2 in July from the previous month’s 103.7 reading and better than the market expectations of 103.3.

Following the release of the IFO Business Survey, the institute’s Economist Klaus Wohlrabe said that “supply problems are weighing on the German economy in both industry and retail.”