Key German business index down for 1st time in 6 months
A Key German economic indicator, the Ifo business climate index, fell for the 1st time in 6 months despite potential for increased exports, figures released Thursday showed.
The general mood in the German economy suffered a setback in May, as the Ifo index, a closely-watched indicator of Germany's economic prospects, shed 3 pts from 109.9 to 106.9 points, the Ifo Institute announced in Munich.
A survey of some 7,000 index companies showed most firms remain pessimistic and say the economic situation will continue to be unfavorable or become even worse.
The German economy is under the negative influence of the recent increase in uncertainty cast over the eurozone, Ifo president Hans-Werner Sinn said.
Despite the eurozone debt crisis and the recession in southern European economies, the Ifo business climate index had been climbing steadily since last November.
The negative outlook on the economy is also adversely affecting employment programs of firms, Hans-Werner Sinn added.
The index showed the retailing and construction sectors are bearing the brunt of the pessimistic expectations.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.