German business confidence heads downhill after 6-month rise

A closely watched survey shows that German business confidence has dropped for the first time after a six-month rise as inflation recedes only slowly in Europe’s biggest economy and interest rates continue to increase. The Ifo institute said Wednesday that its monthly index dropped to 91.7 points in May from 93.4 last month. The index had risen every month since November. Managers’ outlook for the next six months declined significantly while their assessment of both their current situation was slightly worse than in April. There was a sharp decline of confidence in the manufacturing sector where expectations saw their largest increase since March 2022. That was the month after Russia launched its war in Ukraine.