German business confidence edges higher German business optimism has edged higher for a fifth consecutive month but failed to match the pace of improvement seen earlier this year, as the eurozone debt crisis continues to leave scars on Europe's largest economy. The Munich-based Ifo institute said its business sentiment indicator had risen from 109.7 in February to 109.8 this month - the highest since last July. But the latest increase was noticeably smaller than in previous months. "The German economy is losing some of its momentum," said Hans-Werner Sinn, Ifo's president. March's index rise was the result of German companies taking a more upbeat view on the outlook for the next six months. Their assessment of current business conditions was unchanged. Retailers" optimism increased strongly, while the mood in manufacturing turned slightly more pessimistic. Worries about the robustness of Germany's recovery mounted last week after the release of significantly weaker-than-expected eurozone purchasing managers" indices, which showed the 17-country region in recession. German private sector activity was still expanding, according to the indices - but at a slower rate. The Ifo index is regarded as a good guide to future growth trends. German gross domestic product fell in the final three months of last year, but the country is expected by economists to avoid a technical recession - defined as two consecutive quarters of contraction. The Bundesbank remains confident growth will gradually accelerate during the year, despite the impact of fiscal austerity measures across Europe and fears that higher oil prices will act as a further brake on growth. German prospects have been boosted by a revival in global economic growth but the more upbeat mood among the country's retailers noted by Ifo added to evidence that its economy has become less dependent on exports to power growth. Steadily falling unemployment, to the lowest levels since the country's reunification in 1990, have helped boost consumer spending. House prices have also risen, especially in some of Germany's biggest cities.