Germany’s business confidence weakened for a second straight month and at a faster-than-expected pace in May, survey results from the Ifo Institute showed Thursday.
The Ifo business confidence index fell to 97.9 from 99.2 in April. Economists had forecast a score of 99.1.
The current assessment index eased sharply to 100.6 from a revised 103.4 in April. Economists had forecast a reading of 103.5.
The expectations measure of the survey was steady at 95.3 in May, after April’s score was revised from 95.2. Economists had predicted a fall to 95.
“The German economy is still lacking in momentum,” Ifo Institute President Clemens Fuest said.
Confidence weakened slightly in manufacturing and fell sharply in services. Morale eroded in the trade sector too, led by wholesale.
In contrast, the business climate improved for a third month in a row in construction, building on the already very positive assessment of the current situation and a modest return of optimism.
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