World survey sees new woe for economy

Tim Wallace
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ALREADY weak economic conditions are set to worsen over the next six months, according to the Ifo World Economic Survey (WES), out yesterday.

The global climate index has worsened from 97.7 in the third quarter to 78.7 in the fourth quarter.

Such a drop takes the index below its long-term average, 96.9, and well down on the 100 level seen in 2005.

Expectations for the climate in six months time dropped sharply, with the index falling from 99.1 in the third quarter to 86.0 this quarter.

The indicator for western Europe’s economic climate slumped from 105.2 to 81.4 on the quarter, compared with a long-term average of 106.5.

North America’s climate reading fell from 81.2 to 69.5, from a trend rate of 92.2, whilst Asia’s declined from 94.7 to 77.2, against an average of 90.7.

Meanwhile, new car registrations, another measure of economic activity, fell 1.4 per cent in the Eurozone on October last year, new figures revealed.