By Nina Adam 
 

FRANKFURT--German business sentiment dropped in May, as companies' assessment of their current situation worsened, a sign that the economy is still lacking oomph, the Ifo Institute said Thursday.

The Ifo business-climate index slipped to 97.9 points from 99.2 points in April. Economists polled by The Wall Street Journal had forecast a reading of 99.1 points for May.

The Ifo result is based on a poll of about 9,000 companies in manufacturing, services, trade and construction.

On the bright side, companies in the country's important manufacturing sector raised their expectations for the first time since 2018, according to the Ifo.

In the chemicals industry, "optimism has taken the place of recent pessimism," Ifo President Clemens Fuest said, but he added that "the German economy is still lacking in momentum."

Write to Nina Adam at nina.adam@wsj.com

(END) Dow Jones Newswires

May 23, 2019 04:48 ET (08:48 GMT)

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