A closely watched survey has shown that German business confidence deteriorated sharply this month.
The Ifo economic research institute's monthly business climate index plunged to 108.7 points from 112.9 in July, highlighting a sharp slowdown seen also in other recent data.
The result was well below analysts' expectations of a decline to 111 points and was the biggest drop since the index lost 4.7 points in July 2008. It was also the lowest level since June 2010.
'Companies have scaled back their expectations of business developments in the coming half-year,' an Ifo statement quoted president Hans-Werner Sinn as saying. He added that the German economy was not immune to current worldwide turbulence.
A sub-index that measures companies' assessment of their current situation fell to 118.1 points from 121.4 in July, while expectations for the six months to come dropped to 100.1 from 105. The survey showed falls in all of its categories - manufacturing, retailing and construction.
