Munich - The German business community's mood showed a surprisingly sharp downturn in August, the Ifo-Institut for economic research in Munich reported Tuesday. In its monthly survey of business sentiment, Ifo said its index dropped to 94.8 points, from last month's 97.5 points.
While a downturn had been expected, the August drop was much higher than anticipated. The survey of companies covers their view of the current situation as well as the business outlook for the upcoming six months.
Ifo institute president Hans-Werner Sinn commented, "the German economy is heading increasingly towards economically treacherous waters."
