Ifo: German Business Confidence Continues to Worsen
German business morale fell for the fourth straight month in December, increasing concerns over the health of the Eurozone's biggest economy. The Munich-based Ifo economic institute reported, that its business climate index fell for the fourth month in a row to 101.0 in December, weaker than consensus forecast of 101.8. The index marked its lowest level in more than two years.
It was also reported, that the business expectations index, which measures attitudes toward business prospects over the next six months, fell to 97.3 in December (the lowest reading since November 2014) from 98.7 in November, missing expectations for a reading of 98.3. The current assessment sub-index dropped to 104.7 in December from 105.4 in November, compared to expectations for 104.9.
German nine-year economic expansion is slowing amid trade disputed, Brexit worries and weaker growth in emerging markets. The Germany’s government reduced its economic growth forecast for this year to around 1.7%.