German business morale fell for the fifth consecutive month in January, signalling a downturn in Europe's largest economy where company executives became pessimistic about future business for the first time since 2012.
The Munich-based Ifo economic institute said its business climate index fell to 99.1, the lowest level since February 2016.
"Disquiet is growing among German businesses," Ifo President Clemens Fuest said in a statement. "The German economy is experiencing a downturn."
The German economy grew at a slower pace last year than in 2017 as manufacturers faced headwinds from trade tensions, a slowdown in the euro zone and weaker demand from China and emerging markets.
The government has slashed its economic growth forecast for 2019 to 1% from 1.8% due to slower global economic growth and uncertainty about Britain's exit from the European Union, a newspaper reported this week.
