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Business confidence slumps in Germany

German business confidence has fallen for the fourth consecutive month, according to August’s Ifo results.

The economic institute’s survey showed a slump to 102.3 points this month as confidence in the country’s business prospects hit its lowest point since March 2010.

Ifo released information that indicated a “brighter” climate for manufacturing, where as a “cooling” in the retail and wholesale sectors accounted for the fall in confidence.

Construction firms also reported a poor outlook in business conditions, and expected a further deterioration for the second half of the year.

Hans-Werner Sinn, President of the Ifo Institute, said: “The current business situation deteriorated only slightly, but companies expressed greater pessimism regarding future business developments. The German economy continues to falter.”

Ifo use business assessments to determine their headline figures and calculate the outlook for the next six months.

This was posted in Bdaily's Members' News section by Miranda Dobson .