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German business confidence falls

Frankfurt - The German Ifo business confidence fell to a six-month low in June, data showed on Tuesday, as companies fret about the impact on their business from the crises in Ukraine and Iraq.

The Ifo economic institute's closely watched business climate index fell to 109.7 points in June - its lowest level since December 2013 - from 110.4 points in May.

That is a slightly steeper fall than expected: analysts had been pencilling in only a fractional dip to 110.2 points.

“Assessments of the current business situation remained good, but companies were less optimistic about future business developments.

The German economy fears the potential impact of the crises in the Ukraine and Iraq,” explained Ifo chief Hans-Werner Sinn.

Ifo calculates its headline index on the basis of companies' assessments of current business and the outlook for the next six months.

The sub-index measuring current business was unchanged at 114.8 points.

At the same time, the outlook sub-index fell to 104.8 points, its lowest level since October 2013. - Sapa-AFP

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