Business morale flops in France and Germany

 
Ben Southwood
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GERMAN economic confidence suffered its sharpest shock since 1998, according to the ZEW index released yesterday, while the INSEE measure of the French business climate was also shown to have slumped.

ZEW measured the expectations that 350 financial analysts had for the future, just before the Greek election, when 34.1 per cent expected the German situation to worsen, compared to just 17.2 per cent who expected an improvement.

Commenting on this week’s Greek election result, ZEW chief Wolfgang Franz cautioned that it "affords us a short breathing space, but nothing more and nothing less”.

Meanwhile, the French INSEE index revealed business morale sinking to their lowest levels since December 2009.