The latest official figures show that the German business confidence has fallen to a one year low as companies remain pessimistic about their business outlook for the next six months.

Figures provided by the Munich-based Ifo economic institute says business confidence has fallen to its lowest level since December 2014.

The business climate index fell to nearly 105.7 points in the third consecutive monthly decline.

The data also showed that while businesses' assessment of their current situation improved, their outlook for the next half-year was significantly worse.

"The majority of the 7,000 managers polled was pessimistic about its business outlook," Ifo said in a statement. "With production levels falling at the end of 2015, manufacturers fear that the downturn will continue."

Ifo said the building industry provided a silver lining, with the sector continuing to be in good shape and full of growth expectations thanks to low interest rates and growing demand for apartments as the influx of migrants continued.

The survey indicated German executives share worries about the global economy that have sent financial markets lower recently.

Manufacturers’ business expectations have sharply declined as production levels were down at the end of 2015 over low demand for German products.

Analysts said the latest Ifo reading showed that Germany's powerful export industry was starting to wake up to global concerns roiling international markets. They also said the risk of a Schengen break-up and tighter border controls that could lead to higher costs may have been noticed by German exporters.

Germany, the biggest economy in the 19-country euro currency union, is currently enjoying low unemployment of 4.5 percent and steady growth amounting to 0.3 percent in the fourth quarter of last year. While exports have slowed, spending by consumers and the government has picked up.