Business confidence in Germany in February dropped for first time in 11 months.
The decline is explained by extremely cold weather this winter which resulted into closing of unfinished constructions constraining work in most construction sites. The index, which measures business climate in Germany, Europe`s first economy, in January slid to 95.2 from 95.8 in December. The lowest point in last 26 years was marked in March 2009 when German business confidence index dropped to 82.2.
After an economic pickup in the third quarter recovery in the first Europe`s economy halted in the fourth quarter of 2009 as unexpected snow and extremely low temperatures dampened construction making the companies stop hiring new employees. Nevertheless, increase in global demand encouraged German exporters who managed to trim its losses.
According to the Bundesbank, Germany`s central bank, the economy is expected to grow at 1.6 percent pace compared to 5 percent slump in 2009.
Yesterday die Spiegel reported that the Minister of Finance of Germany prepared a plan of bail out to Greece of about $20 bln. Germany in cooperation with other EU countries is expected to help Greece suffering from budget crisis.