German business morale unexpectedly dipped in April.
According to surveys of 7,000 firms by the Ifo economic institute, company bosses are worried about global economic growth.
As a result they have moved away from the generally optimistic outlook that followed a solid start to this year for Europe’s biggest economy.
Though IFO’s business climate index remains well above its long-term average, this was the fourth time it has fallen in five months.
The sentiment in manufacturing and construction improved while it declined in the wholesale and retail sectors.
“The mood in the German economy is good but not euphoric,” Ifo economist Klaus Wohlrabe said, citing concerns about weakening exports linked to a slowdown in the United States and China.
With robust private consumption and higher state spending having replaced exports as the main pillar of growth, Berlin is forecasting an expansion of 1.7 percent in 2016 and 1.5 percent in 2017. The German economy grew by 1.7 percent in 2015.