Business confidence in western Germany fell again in October according to data published by the Ifo economics research institute.
Germany's closely watched Ifo business climate indicator fell to 84.7 in October, its lowest level in eight years, in a sign business confidence has not yet recovered from the shock of September 11th.
The Ifo index, based on a survey of around 7,000 German firms and seen as a reliable indicator of growth in Europe's biggest economy, was slightly below the consensus forecast by analysts.
Analysts had expected the index to stabilise after it plummeted in September to 85.0 under the impact of the confidence-shattering attacks on US cities.
The West German business expectations measure fell to 89.6 from 90.6, while the business conditions component of the index rose to 79.9 points from 79.6 in September. The broad climate index for East Germany held steady at 96.6.
In the monthly survey companies express their view on current business conditions and the outlook for the next six months.
Ifo said most survey responses came in between November 10-15th, after the European Central bank cut interest rates by 50 basis points on November 8th. An Ifo official said that normally a rate cut does not immediately influence the assessment.