German survey eases recession fears

Germany's influential Ifo business sentiment indicator fell for the sixth month in a row in November as talk of higher taxes …

Germany's influential Ifo business sentiment indicator fell for the sixth month in a row in November as talk of higher taxes again hit firms' confidence.

The Ifo economic institute said on Tuesday the headline west German business climate index fell to 87.3 from 87.7 - but was above the consensus forecast in a poll of analysts for a decline to 86.8.

The survey's index for business sentiment in eastern Germany also fell, dropping to 95 from 97.8 in October.

Ifo President Mr Hans-Werner Sinn said the economy in the west of the country appeared to be stabilising but that falling business expecations remained a concern.

READ MORE

Separately, Ifo economist Mr Gernot Nerb said the November reading showed a slight recovery and that recession risks had subsided. The business climate deteriorated mainly because of falling expectations in construction, manufacturing and wholesaling, Ifo said.

The Ifo index, based on a monthly survey of around 7,000 German firms, has a track record of heralding growth trends in Germany and is seen as one of the key performance indicators for the whole euro zone.