Germany: Business confidence tumbles to 16-month low in October
October 21, 2011
Business confidence plunged in October as the ongoing sovereign debt crisis threatens banks and clouds the outlook for economic growth. The business confidence index published by the Ifo Institute dropped from 107.4 points in September to 106.4 points in October, which represented its lowest level since June 2010. The reading, nevertheless, slightly overshot private sector analysts' expectations that had the index falling to 106.2 points. The October fall reflected firms' more pessimistic assessment of business prospects for the six months ahead, which fell to its lowest level since July 2009. Meanwhile, firms' current conditions deteriorated marginally compared to the previous month.
Author: Ricardo Aceves, Senior Economist