A recent survey has revealed a slowdown in German business morale in the month of April, spoiling previous forecasts of a small rise and indicating the country’s economy could be struggling due to trade tensions.

As Reuters reports, the Munich-based Ifo economic institute revealed that its business climate index dropped from 99.7 in March to 99.2 in April, contrasting with a forecast of 99.9. March had seen its index rise following six consecutive decreases.

When speaking in a statement, Ifo President Clemens Fuest said: “March’s gentle optimism regarding the coming months has evaporated. The German economy continues to lose steam.”

Additionally, Economy Minister Peter Altmaier last week revealed that Berlin forecast GDP growth of 0.5% this year, following 1.4% growth in 2018 – while the government had previously dropped its expectations for 2019 in January to 1.0% growth from 1.8%.

Tension surrounding Brexit and trade disputes prompted by the U.S. have taken a toll on German exporters and consequently, the country’s economy. This has resulted in growth for the current and next year relying solely on domestic demand, record-high employment, pay increases and low borrowing costs.

Last month, German lighting company Osram had also cut its expectations for the fiscal year 2019 due to a slowdown in the market for the automotive industry, general lighting and mobile devices, as well as a deteriorating economy.