Business Confidence Surprisingly Stable

Business confidence in Germany remained surprisingly stable in October, despite surging oil prices and the strong euro, a new poll showed Monday. But the modest economic recovery in Germany seen since the beginning of the year still lacked any real momentum, the survey showed, and growth is likely to slow noticeably next year, experts predicted. The business climate index calculated each month by the Ifo economic research institute in Munich braved runaway oil prices and the strong euro to edge up 0.1 point to 95.3 points in October, outpacing expectations for a slight decline. The widely watched barometer of industrial confidence had slipped by 0.1 point the previous month and analysts had been pencilling in a fall of around 0.2 point this month. Ifo President Hans-Werner Sinn said the index "has remained stuck at this level, roughly equivalent to its long-term average, for three months in a row. The economy is continuing to grow, but without the same momentum seen in earlier upturns. Employment expectations remain poor." (AFP)