Berlin, Germany (4E) – Business confidence in Germany saw its first decline in six months in October due to uncertainty in the euro zone’s economic recovery.
The business confidence index by Ifo Institute fell to 107.4 in October from 107.7 in September, the first decline in six months. The result compares with the 39 economists’ median forecast of 108 in a survey of Bloomberg News.
Ifo said that about 7,000 firms that participated in its monthly survey reported a slightly worse business outlook. For October, the business expectations index fell to 103.6, which is down from the 104.2 reading in September.
Businesses also have a less favorable assessment of the current business condition, with the corresponding Ifo gauge falling to 111.3 from 111.4 in the prior month.
In a monthly economic survey by Bloomberg News published Oct. 10, gross domestic product (GDP) will likely rise 0.4 percent in the third quarter and will expand at the same pace in the final quarter of the year. The German Federal Statistics Office’s preliminary data for the past quarter is due for release on Nov. 14.
The Ifo results come after a sharp rise in the ZEW index that measures economic sentiment among institutional investors and analysts in Germany, which reached its highest level since April 2010 in October.