A survey has shown that German business confidence deteriorated unexpectedly in February, as an anticipated recovery in the euro zone's biggest economy continues only very slowly.
The widely watched business climate index, calculated each month by the Ifo economic research institute, fell to 95.5 points in February from 96.4 in January.
Analysts had been expecting the barometer to show another modest increase after topping its highest level in 11 months last month.
'The index was not able to continue the positive development seen in the preceding two months,' Ifo President Hans-Werner Sinn said.
'Companies are feeling less confident in both their assessment of current business and in their outlook for the next six months. The recovery in the domestic economy is proceeding only very slowly,' Sinn added.
A breakdown of the data showed that companies were feeling less confident both about their current situation and about the outlook for the next six months.
The current sentiment sub-index fell to 94.5 points in February from 95.3 in January, and the expectations sub-index fell to 96.4 from 97.5.
