Germany: Business confidence falls for second consecutive month
April 24, 2013
The business confidence index published by the Ifo Institute fell to 104.4 points in April from 106.7 points in March. The print represents a second consecutive decline and also exceeded market expectations, which had seen the index falling only to 106.2 points. The April result showed that businesses were less optimistic about their future business prospects for the next six months. In addition, respondents to the survey assessed their current business situation as slightly less positive than in the previous month. Owing to the monthly decline, the Institute acknowledged that "the German economy is taking a breather". FocusEconomics Consensus Forecast panellists expect gross fixed investment to increase 0.4% in 2013, which is unchanged from last month's forecast. Next year, the panel sees investment growth accelerating to 3.7%.
Author: Ricardo Aceves, Senior Economist