German business confidence index Ifo disappoints in May
The German Ifo business confidence fell in May, data showed on Friday, as companies become less optimistic about their future business development.
The Ifo economic institute's closely watched business climate index fell to 110.4 points this month from 111.2 points in April.
That is a slightly steeper fall than expected: analysts had been pencilling in a fractional dip to 111.0 points.
Companies' assessment of their current business situation was "no longer as favourable as in April. Companies are also less optimistic about future business developments," explained Ifo chief Hans-Werner Sinn.
"A lull was seen in the German economy in May," he said.
Ifo calculates its headline index on the basis of companies' assessments of current business and the outlook for the next six months.
The sub-index measuring current business slipped to 114.8 points in May from 115.3 points in April.
At the same time, the outlook sub-index fell to 106.2 points from 107.3 points.
© 2014 AFP