CONFIDENCE in Germany's economy has plunged in the wake of Britain's vote to leave the European Union, dramatic new figures have revealed. Business morale in Europe's biggest economy tumbled in August at its fastest rate since the height of the eurozone debt crisis in 2012, showed the closely-followed economic institute Ifo survey. The monthly 106.2 reading - from 108.3 in July - is now sitting at its lowest level since February. Experts said the impact of Brexit is now starting to bite in Germany.Ifo head Clemens Fuest said: "Business confidence in Germany has clearly worsened. "The German economy has fallen into a summer slump." At the same time, another index measuring corporate expectations in the country fell to it the lowest since October 2014, as Britain's vote to leave the EU starts to take its toll. Ifo economist Klaus Wohlrabe said: "Brexit had a stronger effect now." He said business expectations had been hardest in the sectors with strong ties to the British market, such as chemicals and automobiles. A sector breakdown showed the weaker headline figure was driven by deteriorated sentiment in manufacturing, wholesaling and retailing.It comes after predictions last month that Brexit could wipe 0.4 per cent from Germany's growth over the next eight months, according to the German Institute for Economic Research. At the moment, the country's economy is being supported by state spending as a result of the influx of migrants, as well as spending prompted by the European Central Bank's negative interest rate policies. But growth is already slowing show the most recent figures. Gross Domestic Product (GDP) increased by just 0.4 per cent between April and July quarter, sharply down from the 0.7 per cent recorded in the first three months of the year.