German business confidence declines to near 7-year low

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German business confidence declines to near 7-year low
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German business confidence has fallen for a fifth consecutive month and hit a nearly seven-year low, survey finds—adding to mounting worries that Europe's biggest economy is headed for a recession.

German business confidence has fallen for a fifth consecutive month and hit a nearly seven-year low, a closely watched survey found Monday — adding to mounting worries that Europe's biggest economy is headed for a recession.

It was the lowest reading for the index since November 2012. Ifo's head, Clemens Fuest, said"there are ever more indications of a recession in Germany." The German economy contracted by 0.1% in the April-June period and the country's central bank, the Bundesbank, said last week it"could decline slightly" again in the summer. A technical recession is defined as two consecutive quarters of negative growth.

Still, Ifo's latest survey showed an across-the-board decline in confidence. In the manufacturing sector,"the last time that industrial companies demonstrated such pessimism was in the crisis year of 2009," Fuest said. He added that"not a single ray of light was to be seen in any of Germany's key industries."

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