(By Kevin Donovan) In the "no kidding, Sherlock" category this morning German business leaders are said to take a dim view of their prospects. The closely watched Ifo business climate index fell from 106.9 to 105.3 in June, its lowest level in two years.
The sentiment survey queries about 7,000 German businesses on the current situation and expectations.
The survey is yet another piece of depressing news cementing the notion that the world economy is sinking into recession. In the U.S. yesterday, the Federal Reserve Bank of Philadelphia's index of manufacturing activity in the mid-Atlantic region posted a precipitous decline, leading to a sell-off on Wall Street.
"Although assessments of the current business situation brightened somewhat after deteriorating significantly last month, companies reported far lower expectations with regard to their six-month business outlook," said Hans-Werner Sinn, president of the Ifo Institute. "The German economy fears the growing impact of the euro crisis."
In Europe stocks are lower, with the DAX off 0.89%. In the U.S., stock futures point to a flat opening.