UPDATE 2-Drop in German business morale points to meagre growth [Reuters]
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Source: Reuters
Drop in German business morale points to meager growth BERLIN (Reuters) - German business morale deteriorated more than expected in May as confidence in the services sector worsened, a survey showed on Thursday, suggesting that Europe’s largest economy is losing steam after solid growth at the start of the year. The Munich-based Ifo institute said its closely watched business climate index fell to 97.9 in May. This was the lowest reading since November 2014 and clearly missed the consensus forecast for a reading of 99.1. “The German economy is still lacking in momentum,” Ifo President Clemens Fuest said. In the services sector, business climate took a “substantial hit”, Fuest said, with the sub-indicator of current sentiment in services posting its biggest monthly drop since April 2013. Ifo chief economist Klaus Wohlrabe told Reuters that a slowdown in manufacturing was now spilling over to services as transport and logistics firms, that depend on contracts from industrial companies,
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