Germany's closely watched Ifo business climate index fell in March, slightly below expectations, in a move which could dampen speculation about an imminent European Central Bank rate cut, data this morning showed.
The timeframe of Ifo's monthly survey of 7,000 firms included the attacks in Madrid on March 11th that killed 190 people. Ifo said an analysis of results received before and after the attacks showed "no significant differences".
The Munich-based institute said its German business climate index fell for a second consecutive month to 95.4 from 96.4 in February compared with the consensus among analysts polled by Reuters for a drop to 95.7. Forecasts ranged from 94.4 to 96.5.
Ifo said the fall was led by a drop in the business expectations sub-index to 98.9, its lowest level in six months, from a revised 100.3 in February.
Firms' assessment of their current conditions also fell to 92.1 from a prior 92.6, the first drop in the component since September.