German firms are again less willing to recruit new staff members in July after the decline in June, the Ifo research institute reported here on Wednesday.

According to the report, the Ifo employment barometer index in July falls to 107.2 index points from 107.8 points index points in June.

"Although companies in many branches are still looking for employees, the positive employment dynamic continued to weaken," the report noted.

Companies in automotive manufacturing, electronics and chemical industry are in particular seeking new employees, while willingness to recruit remains positive in the service sector, although it is no longer as strong as last months, according to the Munich-based think tank.

In addition, the barometer in manufacturing declined after seven consecutive increases, Ifo said.

Ifo is one of Europe's leading research institutes. Its business climate index is considered among the most important barometers for the German economy. Enditem