Germany: Business confidence drops to lowest level in over two years
August 27, 2012
The European debt crisis is taking its toll on the economy, fuelling concerns on firms' business prospects. Against this backdrop, the business confidence indicator published by the Ifo Institute fell to 102.3 points in August, which represents the lowest level recorded since March 2010. The reading came in below both the 103.2 points recorded in July and market expectations that had the indicator declining to 102.7 points. The monthly drop reflected that firms showed less optimism about their current economic conditions, while businesses revealed an even worse assessment of their future business expectations for the next six months. According to the Ifo Institute, "the German economy continues to falter".
Author: Ricardo Aceves, Senior Economist