Business confidence collapses

Germany's economic climate extraordinarily dire due to coronavirus and posts its biggest drop in 30 years, a survey shows.

Geschäftsklima bricht ein

Berlin (dpa) - German business confidence collapsed in March, according to the Ifo institute, which described the economic climate as "extraordinarily dire" in releasing its closely watched survey on Wednesday.

The Ifo business climate index plunged from 96.0 in February to 86.1 the following month, posting its biggest drop since German reunification 30 years ago and falling to lows not seen since July 2009.

It was the Munich-based institute's second publication of the figures, after it released a preliminary business climate report last week - a first in its 70-year history - amid fears that the coronavirus crisis is dragging Europe's largest economy into recession.

Since Thursday's early publication, when the index stood at 87.7 points, the value has fallen by a further 1.6 points.

The Ifo's business climate index is based on a survey of about 9,000 executives.