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German Ifo business climate falls to 4-month low in April

Published 04/24/2013, 04:03 AM
EUR/USD
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Investing.com - German business confidence in April weakened to a four-month low, as fears over the outlook for growth in the euro zone’s largest economy weighed on sentiment, industry data showed on Wednesday.

In a report, the German research institute, Ifo said its Business Climate Index fell to a seasonally adjusted 104.4 in April from a reading of 106.7 in March.

Analysts had expected the index to ease down to 106.2 in April.  

The Current Assessment Index declined to 107.2 from 109.9, compared to expectations for a modest decline to 109.5.

The Business Expectations Index, which measures attitudes toward business prospects over the next six months, declined to 101.6 in April from 103.6, missing expectations for a reading of 103.0.

The monthly index is based on a survey of around 7,000 German firms in the manufacturing, construction, wholesale and retail sectors.

Following the release of the data, the euro fell sharply against the U.S. dollar, with EUR/USD shedding 0.28% to trade at 1.2967.

Meanwhile, European stock markets remained broadly higher after the open. The EURO STOXX 50 rose 0.7%, France’s CAC 40 gained 0.8%, London’s FTSE 100 eased up 0.3%, while Germany's DAX tacked on 0.4%.

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