Forex News – German business sentiment improves in November
November 22, 2013 11:58 am
Europe’s largest economy is showing signs of steady recovery according to the Ifo Index of German business sentiment realeased today which hit a new 18-month high in November.
The latest reading of the Ifo business climate index jumped to 109.3 compared to October’s 107.4 reading and beat expectations for a rise to 107.7. The stronger numbers suggest fourth quarter GDP in Germany could expand further.
Ifo president Hans-Werner Sinn said the German economy was looking ahead to the winter months “with confidence”.
He said in a statement: “Firms’ expectations regarding business developments rose to their highest level since spring 2011.”
The Ifo business climate index is based on a survey of 7,00o firms in Germany and is a leading indicator on economic health. It is closely watched because the German economy is the biggest in the Eurozone and is perceived as a “powerhouse’ for the region.
The euro rose to a new 2-day high against the dollar after the data, to $1.3526, up from around $1.3493 beforehand. It also hit a four-year high against the yen to 136.92 yen.
Germany’s pace of growth has surpassed that of the struggling peripheral Eurozone economies and latest confidence indicators confirm that the German economy should continue growing at around its potential growth rate in the coming months. Third quarter GDP was confirmed at 0.3% from the previous three months and 1.1% year-on-year. Germany accounts for about 30% of Eurozone economic activity but it remains to be seen if it can pull out the peripheral economies from a recession.
Europe’s largest economy is showing signs of steady recovery according to the Ifo Index of German business sentiment realeased today which hit a new 18-month high in November.
The latest reading of the Ifo business climate index jumped to 109.3 compared to October’s 107.4 reading and beat expectations for a rise to 107.7. The stronger numbers suggest fourth quarter GDP in Germany could expand further.
Ifo president Hans-Werner Sinn said the German economy was looking ahead to the winter months “with confidence”.
He said in a statement: “Firms’ expectations regarding business developments rose to their highest level since spring 2011.”
The Ifo business climate index is based on a survey of 7,00o firms in Germany and is a leading indicator on economic health. It is closely watched because the German economy is the biggest in the Eurozone and is perceived as a “powerhouse’ for the region.
The euro rose to a new 2-day high against the dollar after the data, to $1.3526, up from around $1.3493 beforehand. It also hit a four-year high against the yen to 136.92 yen.
Germany’s pace of growth has surpassed that of the struggling peripheral Eurozone economies and latest confidence indicators confirm that the German economy should continue growing at around its potential growth rate in the coming months. Third quarter GDP was confirmed at 0.3% from the previous three months and 1.1% year-on-year.
Germany accounts for about 30% of Eurozone economic activity but it remains to be seen if it can pull out the peripheral economies from a recession.
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