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German business confidence slips again in August

German business confidence slips again in August

German business confidence slipped again in August amid turbulence on global financial markets, a closely watched survey showed Tuesday, but the decline was smaller than expected.
The Munich-based Ifo institute said its business confidence index slipped to 105.8 points in August from 106.4 in July.
It was the fourth monthly decline in business sentiment in Europe's biggest economy. However, economists surveyed by Dow Jones Newswires had predicted a sharper decline to 105.2.
Companies' view of their current situation improved slightly, with that sub-index creeping up to 111.5 points from 111.3.
"The outlook for the coming six months is still marked by optimism, albeit somewhat weaker," Ifo president Hans-Werner Sinn said. "Here the turbulences in financial markets may have played a role."
The sub-index measuring companies' outlook dipped to 100.4 points from 101.7.
Still, "both survey components are clearly above the long-term average and point to a further robust economic upswing," Sinn said in a statement.
He said that, in the manufacturing sector, business confidence was slightly lower in August; and that, "with regard to exports, the survey participants are less optimistic despite the weaker euro." Exports have been the main motor of Germany's economic recovery over the past two years.
Ifo surveyed some 7,000 managers across various sectors for its monthly survey.
The survey followed a larger-than-expected drop last week in the more volatile ZEW index of investor confidence, which was dragged down by worries over the U.S. subprime mortgage crisis.


Updated : 2021-05-14 16:09 GMT+08:00