Business confidence in Germany suffered a second consecutive monthly decline, the closely watched Ifo indicator showed today, but the fall was roughly in line with analysts' expectations.
The Ifo index of business sentiment fell to 110.4 in April from 111.1 in March. Analysts had forecast a drop to 110.5 points.
'Despite considerable risks at the international level, the situation of the firms in Germany remains excellent,' the institute's president, Hans-Werner Sinn, said.
Although firms were a bit more pessimistic about their future prospects, amid higher oil prices and crises in Japan and the euro zone, an index measuring their sentiment about their current situation actually rose.
Before March's small dip, the headline Ifo index had posted nine monthly gains in a row as confidence flew sky high in Germany amid strong economic growth and relatively low unemployment.
After suffering the worst recession for more than six decades in 2009, Germany has stormed back to economic health, registering its strongest growth last year since the country was reunified in 1990.
Berlin last week upgraded its forecasts for growth this year, with the economy poised to expand by 2.6%. In 2012, the government expects slower, but still healthy, growth of 1.8%.
The Ifo index is based on a survey of around 7,000 firms in Europe's top economy.
