German business confidence to tipped to fall as gloom deepens
German business confidence is to set to fall for the seventh consecutive month in December, a key survey to be released Thursday is forecast to say, adding to signs that the downturn in Europe's biggest economy is gaining momentum, dpa reported.
With the global economic gloom threatening Germany's key export machine, analysts predict that the closely-watched Ifo business confidence index will mark the end of the year by slumping to 84 points.
The forecast fall in December comes after index, which is drawn up by the Munich-based Ifo economic institute, plunged more than expected In November to 85.8 points from 90.2 points in October.
Based on a survey of 7,000 German executives, the December Ifo survey also coincides with the publication of a slew of major indicators and data underscoring the bleak economic outlook taking shape across Europe.
As a result, a further drop in the Ifo index this month is likely to add to the pressure on the European Central Bank to press on with its interest-rate cutting cycle well into the new year.