The index fell to 101.7 points in July from 101.8 points in June. Companies were slightly more satisfied with their current business situation, but scaled back their business expectations slightly. The German economy continues to expand, but at a slower pace.

In manufacturing, the index fell for the sixth consecutive month due to far poorer assessments of the current business situation. The indicator nevertheless remains significantly above its long-term average. Manufacturers' business expectations, by contrast, remained slightly optimistic. Demand picked up, but at a slower pace than last month. Capacity utilisation was unchanged at 87.7 percent.

In the services sector the business climate improved. Service providers upwardly revised their assessments of both the current business situation and their business expectations. This was partly due to stronger demand for services.