A few days back I took note of an article from Bloomberg that waxed enthusiastic about a potential turnaround in the German economy. Edward Hugh, though, was having none (or not much) of it (hat tip, New Economist). It looks like Edward may win again. From today's Wall Street Journal (page A10 in the print edition):
German business confidence fell in August, a closely watched survey shows, defying analysts' recent predictions of an improvement and showing that the world's third-largest economy remains fragile as the country's election campaign enters its final weeks.
The Ifo economics institute in Munich said business worsened for retailers and manufacturers this month, driving down the index, though companies still expect sales to improve in the next six months. The Ifo's sentiment index rose in the previous two months, and analysts were hoping for a third rise in a row, which usually signals the German business cycle is on an upswing...
The Journal article today emphasizes the downside of the reports from earlier in the week:
Details of how the economy fared in the second quarter, released separately Tuesday, showed German companies still are cautious about investing in their home country, despite rising profits. Consumer spending fell in the quarter, with high energy prices compounding low wage growth and a continued high unemployment rate of 11.5%.
It appears that pgl's global investment bust lives.
For more mixed economic news from Europe, check out New Economist's post on second quarter GDP revisions for the UK.
UPDATE: The Skeptical Speculator bundles the Ifo report with the University of Michigan's consumer confidence report for the U.S.