BERLIN (dpa-AFX) - Germany's business sentiment worsened more than expected in June as companies were less satisfied with their current business conditions and they remained pessimistic regarding the outlook, survey results from the ifo Institute showed on Friday.
The business confidence index dropped to 92.3 in June from 93.0 in the previous month. The index was forecast to fall marginally to 92.9.
The current situation index fell to 99.3 from 99.6. That was above the expected reading of 99.1.
The expectations index eased to 85.8 from 86.9 in the previous month. Economists had forecast the index to rise to 87.4.
In June, companies were somewhat less satisfied with their current business situation and their expectations remained gloomy amid concerns of rising energy prices and the threat of gas shortages.
'The threat of gas shortages is of great concern to the German economy,' ifo Institute President Clemens Fuest said.
Among sectors, morale weakened considerably in the manufacturing segment. Manufacturers assessed the current situation as slightly worse, while they were significantly more pessimistic about the second half of this year, especially in the chemical industry.
The index for trade also worsened in June, while the confidence index strengthened in the services and construction sectors.
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