German confidence hit by euro rescue efforts

Concerns are growing that the debt crisis across the eurozone is weighing on the German economy following the release of the country’s leading confidence indicator, which shows a downward trend for the fifth month.

The German IFO Index fell to 101.4 in September, down from 102.3 in August. It is at its lowest since Feb 2010, when the eurozone crisis was at its height.

More worryingly, the expectation index, which reflects entrepreneurs’ view of where the economy is heading, was down at 93.2, firmly in recessionary territory.