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Germany: business confidence in the economy fell

According to the Ifo economic institute, after rising for five consecutive months, the German business confidence fell to 107.4 points in January 10/2013, compared to 107.7 points in January 9/2013.

Earlier, the survey by Dow Jones Newswires said conducting analysts predicted indices German business confidence rose to 108 points.

In the last week , purchasing managers index ( PMI ) shows that in the month of Germany 10/2013 growth rate of the private sector at its lowest level in three months . These businesses go down the service providers is one of the causes of the drop PMI .

This could be a sign that the German economy is not growing as expected . In addition, the risk of default by the United States and the strengthening of the euro also put pressure on the German export sector .

However, economist Carsten Brzeski , of ING , said despite the decline , the German economy is still in a state of good .

Besides , the strength of the labor market and the recovery of the industrial sector will create momentum for economic growth stable in the coming quarters .

The German government forecasts the economy will grow 0.5 % this year and 1.7 % in 2014 .

After weakening last year , the German economy has recovered II/2013 quarter and marked the highest growth rate of more than 1 year , thanks to recovering labor market , wage increases and favorable financing conditions help promote strong domestic demand .