Not the US, but this is a worsening sign for a global economic slowdown as the 3rd biggest exporter in the world is on the brink of a recession.
Ifo expectations index plunges to 92.2, lowest since 2009.
German companies’ business outlook tumbled to the lowest in a decade, adding to signs that Europe’s largest economy is getting dangerously close to a recession.
The Bundesbank says the economy probably shrank in the second quarter.
Private consumption has held strong so far, but may prove vulnerable should Germany’s record-low unemployment start to rise from a record low, as predicted by the Bundesbank.
So far, Germany’s government has given no indication that it is planning to bolster the economy with some additional fiscal stimulus — despite free money available on credit markets. Chancellor Angela Merkel takes the approach that a slowdown after a period of historic growth is normal, and the headwinds will ease when U.S. President Donald Trump’s trade wars get resolved.