German business sentiment clouds over but no sign of recession – Ifo

© Reuters. FILE PHOTO: The skyline of the banking district is pictured in Frankfurt, October 21, 2014. REUTERS/Ralph Orlowski

BERLIN (Reuters) – German business morale fell more than expected in June, as rising energy prices and the threat of gas shortages unsettled businesses in Europe’s largest economy, a survey showed on Friday.

The Ifo institute said its business climax index dropped to 92.3 following a reading of 93.0 in May, when the closely watched indicator posted a surprise recovery despite the economic impact of the Russia-Ukraine war.

A Reuters poll of analysts had pointed to a June reading of 92.9.