BERLIN (AP) — A closely watched survey shows that German business confidence has dipped, with companies less optimistic about both their current situation and the outlook for the next six months.

The Ifo institute said Friday that its confidence index — a key indicator for Europe’s biggest economy — slipped to 110.4 points this month from 111.2 in April. That’s a slightly bigger decline than the dip to 110.9 that economists had predicted.