German business confidence unexpectedly drops

25th June 2004, Comments 0 comments

24 June 2004 , MUNICH - The mood in the German business sector dropped for a second straight month in June, defying most economists' predictions of an upturn, according to the latest monthly business confidence index released by the Munich economic think tank ifo-institute.

24 June 2004

MUNICH - The mood in the German business sector dropped for a second straight month in June, defying most economists' predictions of an upturn, according to the latest monthly business confidence index released by the Munich economic think tank ifo-institute.

The institute said its business confidence index fell to 94.6 points, from 96.0 points in May. In April, the index had been at 96.3 points after rising from the 95.4 point reading in March.

The latest business confidence reading is the lowest since September 2003, the ifo-institut noted.

Most economists had been expecting an improvement in the index, which is based on a survey of 7,000 executives and is considered to be one of Europe's prime economic indicators.

Two other indices also dropped in the June monthly ifo report. The index for companies' assessments of their current positions fell to 93.2 points, from 94.4 points in May, while the index for future business prospects fell to 96 points, from 97.7 points.

DPA

Subject: German news

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