FINANCE - Ovetii Observe German Business Confidence Declines to 20-Month Low
December 04, 2007
According to sources, research by Ovetii revealed that the Munich business climate index, based on a survey of 7,000 executives, fell to 103.9 from 104.2 in September. Ovetii economists apparently expected a drop to 103.7.

In addition, Ovetii apparently feels that the euro's appreciation to a record $1.4348 recently may hurt exports just as a 74 percent jump in oil prices since mid- January inflates energy bills. Higher credit costs sparked by the U.S. housing slump may also slow growth in Europe. French business confidence fell to a five-month low in October.
Ovetii senior analysts reportedly stated that the level of confidence in the German economy is still good, but that people are getting nervous.

A gauge of current business conditions fell to 109.6 from 109.9 in September while a measure of expectations declined to 98.6 from 98.7 a recent report showed.

The German government cut its forecast for economic expansion in 2008 to 2 percent from 2.4 percent, citing slowing export growth. The economy will grow 2.4 percent this year, the Economy Ministry said, after 2.9 percent in 2006.

About the Press Release
Ovetii of Greece have reported that German business confidence dropped to a 20-month low in October after the euro's advance to a record and rising oil prices threatened to curb economic growth.


 
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