The business climate in westernGermany deteriorated further in October, with corporate leaderspessimistic about their prospects over the next six months, aclosely-watched indicator revealed today.
The Ifo resarch institute said its monthly reading of businesssentiment fell to 87.7 points in October from 88.2 in September, itsfifth straight monthly decline.
But the figure was roughly in line with expectations by analystsand did not interfere with a positive start to the day on theFrankfurt stock exchange.
The Dax index was up 2.96 per cent in early trading to 3,193.90points, led by the technology sector. Analysts had foreseen an Iforeading of 87.8.
The overall October index was dragged down by a decline of 1.4points to 97.9 in a sub-index reflecting expectations by businessleaders for the coming six months.
But company officials were somewhat more upbeat about thecurrent situation, with a sub-index recording such sentiment risingto 77.9 from 77.5 in September, consistent with market forecasts.
"Overall, in both western and eastern Germany, we're seeing aslight improvement in the current situation while (future) prospectscontinue to deteriorate," Ifo said in a statement.
It added that the manufacturing sector had been particularlyhard hit in western Germany while improvements were noted inconstruction and wholesale and retail commerce.
An index measuring assessments of current circumstances ineastern Germany edged up to 115.2 in October from 115.1 the previousmonth, according to Ifo, which added that the medium-term prospectsindex fell to 81.4 from 82.7 in September.
AFP