The mood in the German economy surprisingly clouded over in July

The mood in the German economy surprisingly clouded over in July. The Ifo index for the business climate fell by 0.9 points to 100.8 points, as the Munich Institute announced. The leading German economic barometer, which is based on a survey of around 9,000 companies, fell for the first time since the beginning of the year. Analysts were surprised by the development. On average, they had expected an increase to 102.5 points. The assessment of future business is decisive for the decline. "Delivery bottlenecks for preliminary products and worries about increasing numbers of infections are burdening the German economy," says Ifo President Clemens Fuest. The managers judged their situation a little better than before. The business outlook for the next six months, however, was assessed less optimistically. Ifo expert Klaus Wohlrabe provides a closer look. According to him, almost 64 percent of industrial companies are now complaining about bottlenecks in preliminary products such as chips. "That now has an impact on other industries," says Wohlrabe. 60 percent of wholesalers and more than 42 percent of retailers would also complain of problems. "It's like a domino effect." The Ifo expert assumes that the issue will remain in the second half of the year. "We had thought that the delivery bottlenecks were only a temporary problem, but they are likely to last a little longer," said Wohlrabe. The industry is in good shape and orders have even increased. "But not as much can be produced as one could actually do." The export economy in particular is well positioned. Companies were also looking for more and more employees, especially industry.