German biz confidence drops

FRANKFURT: German business confidence unexpectedly fell for the first time in 11 months in February as the coldest winter in 14 years damped retail sales and construction.

The Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, fell to 95.2 from 95.8 in January. Economists expected a gain to 96.1, according to the median of 37 forecasts in a Bloomberg News survey. The index reached a 26-year low of 82.2 in March last year.

Germany's recovery from its worst recession since World War II stalled in the final quarter of 2009 as domestic spending waned. Below-average temperatures and snow have brought construction sites to a standstill and prompted companies to curtail hiring, hurting household spending.