German Business Index Falls Again

A leading German business confidence index has fallen again for the month of December. The ZEW economic research institute's figures show that business confidence slumped by 3.6 percent to 0.6 percent. The index has now fallen for the sixth consecutive month, and is at its lowest point since July 2001.

Analysts and investors polled for the index said they were concerned that the economic situation in the euro-zone's biggest economy was likely to get worse before it improves. "Sentiment on the financial markets is still at rock bottom and the danger of recession has by no means vanished," said ZEW president, Wolfgang Franz.