The business climate in Germany deteriorated in May for the first time in seven months, but remained at a high level, becoming another sign of slowing downof Europe's largest economy.
Although the rate of economic growth as a whole remains at a decent level, data on Friday showed that the slowdown in the first quarter was due to the decline in international trade.
Business climate index, calculated by research institute Ifo, fell in May to 108.5 point from 108.6 point in April. Analysts had expected the index to be at 108.3 points.
"Given today's data on GDP and business climate, and yesterday's PMI, there may appear doubts about the strength of the German economy - said CarstenBrzeski of ING. Germany is at the end of a very positive cycle of growth that is artificially prolonged by external favorable factors."
He added that due to long recovery that Germany has already passed, of course, that the growth rate will now be lower than in the rest of the eurozone.
Ifo study revealed that companies appreciate the current situation more optimistic than ever, since June 2014, but lose optimism about the immediate prospects.
GDP growth in Germany in the first quarter was confirmed at 0.3 %, which is worse than the growth of the eurozone economy, which reached 0.4 percent, and far behind the 0.6% in France.
GDP data suggest that private consumption growth index has added 0.5 percentage points, and foreign trade has taken away from it 0.2 percentage points, as the increase in imports was almost two times higher than the growth of exports. But economists continue to believe about the best.
"The impact of the weak euro on exports is not yet fully apparent, and the recovery of growth in the US and other major markets should ensure the increase in exports - said Christian Schulz of Berenberg Bank. - It will support stable growth in the coming quarters."
Ifo confirmed its growth forecast for the German economy in the second quarter at 0.5 percent.