German business confidence hits 13-month low

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Frankfurt - Germany's Ifo business confidence index fell to the lowest level for more than a year in August, data showed on Monday, as Europe's biggest economy continues to run out of steam.

The Ifo economic institute's closely watched business climate index fell to 106.3 points in August from 108.0 in July.

Analysts polled by Dow Jones Newswires had expected a shallower dip, to 107.0 points.

The index is now at its lowest level since July 2013.

Companies “were again less satisfied with their current business situation. Also with regard to the further course of business, they are more sceptical than in the previous month,” said Ifo president Hans-Werner Sinn.

“The German economy is continuing to lose steam.”

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 slipped to 111.1 points from 112.9 last month.

At the same time, the outlook sub-index fell to 101.7 points, the lowest level since May 2013. - Sapa-AFP

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