(Bloomberg) -- Go inside the global economy with Stephanie Flanders in her new podcast, Stephanomics. Subscribe via Pocket Cast or iTunes.
Confidence among German companies unexpectedly worsened in April, signaling that a long-expected rebound in Europe’s largest economy may still be some way off.
Sentiment has been on a downward trend for more than a year, interrupted only by occasional gains, and few signs point to an immediate turnaround. The country’s manufacturing sector remains mired in a slump, and the government has slashed its full-year outlook to predicted the weakest economic growth in six years.
Ifo said its closely watched index dropped to 99.2, missing forecasts for an increase to 99.9. A measure of expectations among executives also declined.
The euro extended its decline against the dollar after the report and was down 0.2 percent to $1.1207 as of 10:05 a.m. Frankfurt time. German 10-year bonds rose.
Germany’s struggles, along with rising trade protectionism and a slowdown in China, have weighed on the euro-area economy. The European Central Bank has already prolonged record-low interest rates and held out the prospect of fresh stimulus to support flagging growth.
--With assistance from Harumi Ichikura, Kristian Siedenburg and Catarina Saraiva.
To contact the reporter on this story: Carolynn Look in Frankfurt at firstname.lastname@example.org
To contact the editors responsible for this story: Fergal O'Brien at email@example.com, Jana Randow
©2019 Bloomberg L.P.