Recession is knocking on the door. It can no longer be ruled out, - head of researchers Ifo Volrabe

Germany's business sentiment fell more than expected in July (to 88.6 instead of the expected 90.2), an Ifo business sentiment survey showed.

Due to high energy prices and looming gas shortages, Europe's largest economy was on the brink of a crisis.

"The Ifo business climate index, like the purchasing managers' index, now clearly points to a downturn in the German economy," said Commerzbank economic analyst Jorge Kremer.