German business confidence down for 5th consecutive month, falls more than expected

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A survey shows that business confidence in Germany, Europe's largest economy, has dropped for the fifth consecutive month — continuing a slide that has been fueled by the persistent turmoil in Ukraine and sluggish European growth.

The Ifo institute said Wednesday that its confidence index dropped to 104.7 points for September from 106.3 last month as the mood among executives darkened for both the current situation and the outlook for the next six months.

The fall was bigger than anticipated — the consensus in the markets was for a more modest fall to 105.8.

Germany's economy shrank 0.2 percent in the second quarter though it is expected to return to growth in the third.