Germany Ifo Business Climate dropped from 99.6 to 98.8 in September, below expectation of 100.4. That’s also the third decline in a row. Current Assessment index dropped from 101.4 to 100.4, below expectation of 100.8. Expectations index dropped form 97.5 to 97.3, below expectation of 100.0.

Looking at some more details, manufacturing dropped sharply from 24.2 to 20.0. Services rose from 17.8 to 19.1. Trade ticked lower from 9.0 to 8.9. Construction rose from 8.1 to 10.9.

Ifo said: “Companies were less satisfied with their current business. They were also more skeptical about the coming months. Problems in the procurement of raw materials and intermediate products are putting the brakes on the German economy. Manufacturing is experiencing a bottleneck recession.”