BERLIN, Sept. 24 (Xinhua) -- German business sentiment fell in September for the first time this year, ending an eight-month run of improvement and casting fresh doubts on the recovery of Europe's largest economy, a survey showed Wednesday.
The ifo business climate index, a leading German indicator, dropped to 87.7 points from 88.9 in the previous month. The index had risen steadily since climbing to 85.4 in January, holding flat in February before improving in the following months.
"Companies were less satisfied with current business, while their expectations clouded noticeably," said Clemens Fuest, president of the ifo Institute. He added that this has weighed on hopes for a recovery.
Among the four key sub-index, only construction improved, while manufacturing, services and trade all weakened. Manufacturers grew more cautious about both current conditions and future expectations, while new industrial orders, which are vital to the sector's outlook, continued to decline, the Munich-based institute said.
The sharpest drop was in services, particularly transport and logistics, partly reflecting disruptions from new U.S. customs rules that briefly halted German postal giant DHL's parcel deliveries to the United States in September.
Carsten Brzeski, global head of macro at ING Research, said German optimism is fading. He noted that U.S. tariffs and a stronger euro are adding pressure on exports, while domestic fiscal stimulus has yet to deliver and structural reforms are still lacking. ■
