FRANKFURT, Nov 24: German business confidence fell in November, but not enough to derail the tentative recovery in the eurozone’s biggest economy, data showed on Thursday, just as the European Central Bank was preparing to raise its key interest rates for the first time in five years.
The widely watched business climate index, calculated each month by the Ifo economic research institute, fell to 97.8 points in November from 98.8 points in October, Ifo said in a statement.
The decline was steeper than expected: consensus forecasts had predicted a more modest drop to around 98.4 points.
Nevertheless, the index remained above its September level of 96 points, said Ifo chief Hans-Werner Sinn.
“The latest data confirm a continuation of the current moderate economic recovery,” Sinn said.
Ifo’s macro-economic expert Klaus Abberger agreed.
“Overall, the fundamental trend remains positive. We’re cautiously optimistic,” he said.
Too much importance should not be attached to this month’s decline, Abberger continued.—AFP
