Germany's closely watched Ifo business climate index fell by more than expected in March in a sign that the slowdown in Europe's largest economy has not yet bottomed out.
Munich-based Ifo's monthly survey published today showed that the west German business climate index slipped to 93.9 in March after a sharp fall to 94.9 in February from 97.5 in January.
Economists had forecast on average a decline to 94.4. Forecasts ranged from 93.5 to 95.5.
The figures follow a fresh series of downward revisions of forecasts for Europe's growth, notably from German Chancellor Mr Gerhard Schroeder, who acknowledged yesterday that Germany would miss a target of 2.75 per cent growth in 2001.
The March drop brought the index to its lowest level since July 1999 as business expectations fell more than a point while businesses' assessment of current trading conditions fell less dramatically.