Germany: Business confidence falls unexpectedly in October
October 25, 2013
The business confidence indicator published by the Ifo Institute fell for the first time in October after five consecutive months of improvement. The indicator registered 107.4 points, following an 18-month high in September (107.7 points). The reading surprised market participants who had expected the indicator to rise further, to 108.0 points.
According to the Ifo, the October survey showed that businesses were less optimistic about their current business situation and, for the first time in three months, they were less optimistic regarding their business prospects in the coming six months. The Institute stated that, "the German economy has not yet moved fully into gear."
FocusEconomics Consensus Forecast panelists expect gross fixed investment to increase 1.0% in 2013, which is up 0.1 percentage points from last month's forecast. Next year, the panel sees investment growth accelerating to 3.6%, which is down 0.2 percentage points over the previous month's projection.
Author: Ricardo Aceves, Senior Economist