German business confidence fell sharply in June as companies grew more pessimistic about both their current and future business, a monthly survey by the Ifo institute showed today.
The Munich-based think tank said its business climate index fell to 94.6, its lowest level since September 2003, from a revised 96.0 in May.
The drop bucked expectations in a Reuters poll of economists for a slight rise to 96.4 and was below even the most pessimistic forecast for a reading of 95.7.
Ifo said the decline in business affected all four sectors of the economy it surveys each month - manufacturing, construction, wholesaling and retailing - and both firms' assessment of their current and future business.
An index measuring companies' assessment of their current situation fell to 93.2 from 94.4 in May, while an index measuring expectations for the coming months fell to 96 from a revised 97.7.
