German business morale in shock fall

FRANKFURT, Sept 24 (AFP): German business sentiment unexpectedly fell in September, a closely watched survey showed Wednesday, in a setback for Chancellor Friedrich Merz as he tries to revive Europe's top economy.

The Ifo institute's confidence barometer fell to 87.7 points, down from 88.9 in August, breaking a run of eight straight increases.

Analysts polled by financial data firm FactSet had expected a slight rise to 89.2 points.

Both businesses' assessment of their current situation and their expectations for the future took a knock, bringing an end to a run of positive data releases that had raised hopes of a gentle recovery for Germany's economy.