The Ifo institute said its business climate index for Germany fell to 105.6 in July from 106.8 in June, a worse-than-expected decline, as sentiment in the manufacturing and retailing sectors worsened. Economists polled by AFX News had forecast the index to slip to 106.0. The business assessment index, which measures current conditions, fell to 108.6 from 109.4 in June. Economists were looking for a July reading of 109.0. The business expectations index slipped to 102.6 from 104.2 in the previous month, coming in just below the 102.7 consensus forecast. "The Ifo business climate index for industry and trade in Germany fell slightly in July but is still at a high level," Ifo executive board member Gebhard Flaig said. He said businesses were no longer "quite so satisfied" with their current business situation and that their expectations for the coming six months were "clearly less optimistic" than in June. But he said the economic situation is still pointing to a recovery.