BERLIN, Sept 25 (Reuters) - German business confidence deteriorated unexpectedly in September, a survey showed on Monday, suggesting that a consumption-led upswing in Europe’s largest economy could lose some momentum in coming months.
The Munich-based Ifo economic institute said its business climate index, based on a monthly survey of some 7,000 firms, edged down to 115.2 from 115.9 in August. The reading compared with a Reuters consensus forecast for a value of 116.0.
The Ifo survey was conducted in the weeks before Sunday’s federal election in which Chancellor Angela Merkel won a fourth term but looks set to change coalition partners, meaning its results do not take into account the election outcome.
“Germany’s economy nevertheless goes into the new legislative period with a strong tailwind,” Ifo chief Clemens Fuest said in a statement.
The drop was due to firms’ more downbeat assessment of the current business situation and their business outlook for the next six months also deteriorated, the survey showed. (Reporting by Michael Nienaber; Editing by Madeline Chambers)