Germany: Business confidence unexpectedly drops in March
March 22, 2013
The business confidence index published by the Ifo Institute fell to 106.7 points in March from 107.4 points in February. The reading marks the first drop in sentiment in five months and contrasted market expectations, which had seen the index rising to 107.6 points.
Business confidence fell in March, as businesses showed less optimism about their future business prospects for the next six months. Meanwhile, firms assessed their current business situation almost as positively as last month. According to Ifo, "the German economy remains on track in a challenging environment thanks to strong domestic demand".
FocusEconomics Consensus Forecast panellists expect gross fixed investment to increase 0.4% in 2013, which is down 0.1 percentage points from last month's forecast. Next year, the panel sees investment growth accelerating to 3.6%.
Author: Ricardo Aceves, Senior Economist