Germany's April business climate index dropped to its lowest level in nearly 6 years.

The ifo Institute for Economic Research in Munich, Germany, released data on the 24th showing that after seasonal adjustments, Germany's commercial climate index fell from 86.3 points in March to 84.4 points in April. This is the lowest point the index has reached since May 2020, indicating that German businesses are becoming more pessimistic about the current situation and future expectations. The data shows that all four indicators that make up the commercial climate index, including manufacturing, services, construction, and trade, have declined compared to the previous month. Clemens Fuest, director of the ifo Institute in Munich, stated that the situation in the Middle East has severely impacted the German economy, and businesses are generally pessimistic about the outlook for the next few months, leading to a downgrade in their assessment of the current situation. Carsten Brzeski, Chief Economist at ING Group, mentioned that the rise in energy prices and supply chain risks brought about by the situation in the Middle East are putting pressure on the German economy and undermining its recovery momentum. The ifo Institute's commercial climate index is seen as a barometer of Germany's economic development and holds significant reference value for analyzing the economic situation in Germany.