Germany: Business confidence falls for sixth consecutive month
October 24, 2012
Business confidence continued to drop, auguring a bleaker outlook for the economy. Accordingly, the October business confidence indicator published by the Ifo Institute fell to 100 points from 101.4 points in September, which marked the sixth consecutive decline and the lowest level in two and a half years. The reading also surprised market analysts, who had predicted that the index would rise to 101.6 points. The monthly fall mainly reflected businesses more pessimistic assessment about the current business situation. Businesses economic prospects for the next six months, however, remained unchanged compared to the previous month. According to the Ifo Institute, the clouds over the German economy are darkening.
Author: Ricardo Aceves, Senior Economist