Fears of a German economic slowdown were further heightened on Monday, as a key business survey fell short of analyst expectations. The Ifo Business Climate index, which measures German business sentiment, showed signs of continued weakness in August, falling for the fourth consecutive month.
The index slipped to 106.3 in August, down from 108.0 in July and missing analyst expectations of 107.0. “The German economy continues to lose steam,” Hans-Werner Sinn, the president of the Ifo Institute, said in a statement, adding that this month’s reading marked the index’s lowest level since July 2013.
Ifo economist and deputy director Klaus Wohlrabe told Reuters that domestic consumption in the country remained solid, but warned that the Ukraine crisis was a “burdensome factor” for the country’s economy.