For the second month in a row, the confidence of German business, as measured by the Ifo index, has declined. But even if the ebullient mood which dominated the start of the year is wearing off, Europe's largest economy is not out for the count.
Economic statistics show that Germany is in a vibrant period of growth.
Production rose by an annualised 3.25 percent in the first half of 2000. High capacity utilisation is prompting an increasing number of companies to plan new investments. Unit labour costs are under control, and company profits are at a comfortable level. Job vacancies in July amounted to 520,000, the highest number since the post reunification upswing in the early 1990s. These figures might even underestimate the extent of the recovery.