German business confidence drops amid growing concerns

German business confidence has fallen amid growing concerns about international risks like the possibility of a trade war with the United States.

The Munich-based Ifo institute said Thursday its business climate indicator fell to 114.7 points in March from 115.4 points in February. Businesses assessed the current situation worse, with the sub-index falling to 125.9 from 126.4 the previous month. Their expectations also dropped to 104.4 from 105.4 in March.

Germany's economy is doing well and the government is predicting 2.4 percent growth this year. But on Wednesday, a council of economic advisers to the government warned that possible U.S. tariffs on steel and aluminum could spark a trade war, which would hurt growth.

Ifo's survey is based on about 7,000 responses from firms in manufacturing, construction, wholesale and retail.