‘Brexit to Trump’ weigh on German business leaders

German business morale fell for the fifth consecutive month in January, a survey showed, signalling a downturn in Europe’s largest economy where company executives have become pessimistic about future business for the first time since 2012.

The decline in morale stems from weaker demand for German goods and services in China, the eurozone and emerging markets, from transatlantic trade tensions and also growing uncertainty linked to the UK’s looming departure from the EU. “Disquiet is growing among German businesses. The German economy is experiencing a downturn,” said Ifo economic institute president Clemens Fuest. Ifo said its business climate index fell its lowest since 2016.