Berlin, Germany (4E) – A closely watched survey of business climate in Germany declined to its lowest mark for over a year in August, according to data released Monday, as Europe’s largest economy continues to lose steam.
The Ifo economic institute’s business confidence index dropped to 106.3 points in August, compared with previous month’s 108.0 reading.
Analysts surveyed by Dow Jones Newswires had forecast a decline in the gauge to 107.0 points. The index is at its lowest mark since July 2013.
Ifo president Hans-Werner Sinn said businesses remain less satisfied with their present business conditions. He adds that companies are also more skeptical about their future business situation than in the previous month.
Ifo calculates the business confidence index based on companies’ assessments of business conditions for the present and for the next six months.
The subindex for current business situation fell to 111.1 points from the prior month’s 112.9 reading. Meanwhile, the subindex for business outlook dropped to 101.7 points, the lowest since May 2013.