There is an unexpected headwind for Europe's largest economy, Germany. The outlook for the German business climate has deteriorated in June, according to a monthly index from the German analysis institute Ifo.
The index for June fell to 89.0, down from 90.3 in May.
Analysts had on average expected a continued rise for the index, which had risen for four months in a row prior to the June decline.
The current business climate index remained unchanged in June compared to the previous month.
"The German economy is struggling to overcome stagnation", writes Ifo chief Clemens Fuest in a comment.
He particularly points to gloomy signals from the manufacturing industry regarding the outlook, with widespread concern about declining orders.
German GDP rose by 0.2 per cent in the first quarter and the German central bank Bundesbank's economists said last week that they expect continued growth in the second quarter.
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