ADVERTISEMENT
News » Money
Jul 25, 6:21 AM EDT

German business confidence drops for 3rd month in a row amid Ukraine, Middle East concerns

Business Video

Latest Business News
Pending sales of US homes fell 1.1 percent in June; pace remains slower than in 2013

Dollar Tree buying peer Family Dollar Stores for approximately $8.5 billion

RPM International agrees to pay $797.5M to trust for asbestos claims from subsidiary business

Virgin America files for initial public offering, size and timing still to be determined

Lloyds bank to pay $400 million to settle with US, British regulators over market rigging

Multimedia
A district summary of the Beige Book
Measuring economic stress by county nationwide
Mall malaise: shoppers browse, but don't buy
Unemployment by the numbers
Family struggles with father's unemployment
Saying an affordable goodbye
Hard times hit small car dealer
Latest Economic News
Stocks fall as results at Amazon, Visa raise worries about consumers; Dow ends below 17,000

How the Dow Jones industrial average and other major indexes fared on Friday

Visa, Amazon, Qlik Technologies, WellCare, and Informatica are big market movers

US stocks end lower after results from Amazon, Visa disappoint investors

US stocks fall at midday after results from Amazon, Visa disappoint investors

British economy grows 0.8 percent in 2nd quarter, exceeds pre-downturn level

German business confidence drops for 3rd month in a row amid Ukraine, Middle East concerns

Obama calls anew for limits on US company mergers overseas, says it's a question of patriotism

IMF cuts global growth forecast because of slowdowns in US, Russia and emerging markets

US stock market inches higher at open after Facebook, Ford and others report quarterly results

Buy AP Photo Reprints
Interactives
Greece's Debt Threatens to Spread
State budget
gaps map
Auto industry problems trickle down, punish Tennessee county
Women give old Derby hats a makeover in tough economy
S.C. town deals with highest unemployment in South
How mortgages were bundled and sold as securities
Tracking the $700 billion financial bailout
Tracking the year's job losses
State-by-state foreclosures since 2007
Credit crisis explained
Presidents and their economic legacies
Lexicon of the financial crisis
Americans' addiction to debt
Interactive
Berlin Wall: 20 Years Later

BERLIN (AP) -- German business confidence fell for a third consecutive month amid ongoing concerns about the economic impact of the crises in Ukraine and the Middle East, though consumer confidence in Europe's largest economy remained robust, surveys showed Friday.

The Ifo institute said its closely watched business confidence index, based on responses from some 7,000 companies, fell to 108 points in July from 109.7 points in June. It was a worse showing than economists had expected.

Businesses' assessment of their current situation and of the outlook for the next six months both fell.

Andreas Rees, an economist at UniCredit, pointed to uncertainty over "what all the recent events could mean for exports and domestic demand," despite Russia's relatively small share of German trade. But he cautioned against overinterpreting the Ifo index's third straight decline, arguing that "a collapse or anything similarly dramatic is not in the pipeline."

Separately, the GfK research institute said its forward-looking survey of German consumer confidence showed a slight improvement, rising to 9 points for August from 8.9 in July.

"Despite the escalation in the situations in Israel and Ukraine, German consumers continue to be exceedingly optimistic this summer," GfK said in a statement. It noted, however, that its most recent poll of some 2,000 people was conducted before the downing of Malaysia Airlines flight 17 in eastern Ukraine.

Germans' economic outlook remained good, GfK said, with consumers' income expectations rising to the highest value the institute has recorded since German reunification. However, their willingness to buy declined after being bolstered the previous month by the European Central Bank's decision to cut its benchmark interest rate to a record low of 0.15 percent.

© 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use.

 
ADVERTISEMENT