German Business Confidence Hits New Low

Business confidence in Germany fell to a 10-month low in August, a new poll showed on Thursday, underlining the vulnerability of recovery in the eurozone's biggest economy in the face of weak domestic demand and runaway oil prices, according to the AFP news agency. The monthly business climate index calculated by Munich-based economic institute Ifo showed that business confidence in Germany faded this month, as companies became more sceptical about the economic outlook over the next six months. The index, the most widely watched barometer of business morale in Germany, slipped to 95.3 points in August, its lowest level since October 2003, Ifo said in a statement. Ifo President Hans-Werner Sinn said that the findings of its latest survey provided no evidence of a self-sustaining rebound in Germany. "Economic recovery in Germany is still not on a broad and secure footing," he said. "Favorable exports are not feeding through to stronger domestic demand."