German index slump increases talk of ECB action
Source: AP-EXCITE
By DAVID McHUGH
FRANKFURT, Germany (AP) — A fall in business confidence in Germany has added to the troubling signs about the European economy as speculation grows that the European Central Bank may take further action to keep the recovery from stalling completely.
Germany's Ifo institute said Monday its closely-watched business confidence index dropped to 106.3 points in August from 108 points in July. Market analysts had expected a dip to 107.
The downbeat signal from the largest of the 18 economies that use the euro follows drops in other surveys of business activity and disappointing zero growth for the currency union in the second quarter after four quarters of weak growth.
The data, coupled with turmoil in Ukraine and the Middle East, has been enough to shake confidence in the European Central Bank's outlook that modest growth will continue and has increased expectations in the markets that the bank may take more drastic action.
FULL story at link.
Federal Reserve Chair Janet Yellen, right, and European Central Bank President Mario Draghi walk together during the Jackson Hole Economic Policy Symposium at the Jackson Lake Lodge in Grand Teton National Park near Jackson, Wyo. Friday, Aug. 22, 2014. (AP Photo/John Locher)
Read more: http://apnews.excite.com/article/20140825/eu--germany-economy-1eeefa4db5.html