(MENAFN– ecpulse) German business confidence, based on a survey of 7,000 executives, slipped more than estimates in June on geopolitical tensions in Ukraine and low inflation in the euro area.
The business climate index climbed to 109.7 in June from 110.4 recorded in May, coming below forecast of 110.3, the IFO institute said on Tuesday.
The current assessment gauge lingered at 114.8, compared to forecast of 115.0.
The expectations measure retreated to 104.8 from a prior of 106.2, lower than projection of 106.0.
A report released last week showed that German investor confidence resumed its drop for a sixth month in June, as the index of investor and analyst expectations retreated to 29.8 from 33.1.
Data released yesterday signaled that the manufacturing sector widened expansion to 52.4 this month from 52.3 but the services showed a retreat from 56.0 to 54.8.
Germany is poised to see a substantial drop to its economic expansion in the second quarter, partly due to less activity in the construction sector," the Deutsche Bundesbank said in its monthly report.
“The underlying trend of the German economy continues to show clear upside,” where the economy should expand more strongly again in the third quarter, the Bundesbank added.
Earlier this month, the Bundesbank raised its growth forecasts for Germany by 0.2 percent to 1.9 percent in 2014, while held its 2015 estimates at 2.0 percent.
As of 08:02 GMT, the euro traded slightly lower around 1.3597 versus the U.S. dollar after touching a peak of 1.3610.
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