German business confidence has fallen for the fourth month in a row amid growing concerns in Europe's largest economy.

The Ifo institute said Monday its closely-watched business confidence index dropped to 106.3 points in August from 108 points in July.

The poll of some 7,000 companies showed a drop in both their assessment of their current situation and also their future expectations.

Germany's economy contracted by 0.2 percent in the second quarter of 2014, and analysts also say concerns continue to grow over the effect of the crises in Ukraine and the Middle East.