According to Reuters, Ifo business climate in Germany declined to 102.1 in April.
Business confidence in Germany deteriorated for the fifth month in a row in April, reflecting the loss of momentum by Europe’s largest economy, Reuters reports.
The business climate index measured by Germany’s Ifo institute declined to 102.1 in April from 103.3 in March. According to Ifo President Clemens Fuest, this is pointing to a slowdown in economic activity.
Analysts also note a decline in the manufacturing activity in Germany over the past three months. The business climate index for the services sector has plunged. Meanwhile, business morale was high in the construction sector amid rising demand for real estate due to growing population, extremely low spending on loans, as well as an increase in real wages.
The institute's economist Klaus Wohlrabe expected economic growth of 0.4% in the first quarter after 0.6% in the fourth quarter. The Ministry of Finance of the country projects that growth may slow down slightly after a 0.6% increase in the last three months of 2017.
Last week, the International Monetary Fund (IMF) improved the growth forecast for the German economy, suggesting a 2.5% increase this year.
