German business confidence slipped to a three year low of 92.9 from 94.8 in August as stalled growth heightened recessionary concerns for Europe’s largest economy. Economic activity in Germany contracted in the second quarter, and growth may remain subdued for the rest of the year as domestic and foreign demands continue to dissipate. Meanwhile, business expectations declined to 86.5 from 87.0, which suggests that the economy may fall into a recession in the third quarter as firms continue to hold a dour outlook going forward.
