Deutsche Bundesbank Monthly Report, August 2004

German business confidence dropped for the third month in four in August and the number of unemployed rose to the highest since May of last year. The surge in oil prices to record levels this year may further delay a recovery in consumer spending, the Bundesbank said in its monthly report for August.

In the second quarter, the German economy again received a considerable boost from exports. The economic recovery, which had already become somewhat stronger in the first three months of this year