Germany suffers decline in business confidence

The latest ZEW index, which measures German business sentiment, fell unexpectedly in July compared with the previous month on the back of lower export figures and the continuing euro crisis.

“The ZEW index fits into the current picture that the German economy looks like a grab bag, which has something for everyone,” says Carsten Brzeski, Brussels-based chief economist with the Belgian bank ING.

“For the optimists, there is the strong labour market, solid private consumption, strong construction growth, and confidence indicators at high levels. At the same time, however, there are dropping new orders, disappointing exports, and the continuing euro crisis for the pessimists.”