Business Confidence Falling in Northern Europe

Cyprus fiasco not helping

Falling confidence among companies in the euro zone's biggest northern economies in March suggests those nations are increasingly vulnerable to the problems afflicting the bloc's southernmost nations, a development that further undermines hopes for growth in the bloc's economy.

A worsening mood among businesses largely predated fraught negotiations over a Cypriot bailout, which economists say could stoke tensions surrounding the euro zone's debt crisis. Poorer sentiment among businesses lessens the chances of a rise in corporate investment, crucial for an economic recovery in the bloc at a time when most of its member states are cutting spending to control their debts.