German business confidence falls slightly

Business confidence in Europe's biggest economy fell slightly in October for the first time after five straight rises, the Ifo economic institute said Friday. The Munich-based economic research institute's business climate index fell to 107.4 points in October from 107.7 in September, the latest Ifo business survey showed. "The German economy has not yet moved fully into gear," the report said, adding that, although business expectations fell slightly, German manufacturers nevertheless remain optimistic about future business developments. Capacity utilization remained unchanged and export expectations rose to their highest value of the year. A German government report issued Wednesday painted a rosy outlook for the economy next year. Rising private consumption and investment would see the German economy expand by 1.7 percent next year after a growth of 0.5 percent this year, the report said.