Merkel flagREUTERS/Laszlo Balogh
An index tracking Germany's business climate came in at 106.6 for April, below analysts' estimates of 107.1.
The Ifo index came down from 106.7 in March, led by poor retail sales.
The data disappointed but is still an improvement on low figures at the end of last year.
Here's Dr. Clemens Fuest from Ifo:
In both wholesaling and retailing the business climate index fell markedly, but nevertheless remains considerably above the long-term average.
Firms at both levels of trade were less satisfied with both their current situation and their business outlook.
In construction the business climate index turned positive. This was mainly due to far better assessments of the current business situation. Contractors, however, were slightly less optimistic about their business outlook for the months ahead.
And here's the chart:
IFOIFO