Germany Business Confidence


Business confidence rebounds in April

The business confidence indicator elaborated by the Ifo Institute rose in April after having fallen in March, amid jitters regarding geopolitical tensions caused by the Ukrainian crisis. The indicator came in at 111.2 points, overshooting both the 110.7 points registered in March and the 110.4 points the market had expected.

April's result showed that businesses' assessments of their current situations, which according to Ifo, “were already favourable”, improved over the previous month. In addition, firms were more confident regarding future business developments. The Ifo Institute added that, “despite the crisis in Ukraine, the positive mood in the German economy prevails.”

FocusEconomics Consensus Forecast panelists expect gross fixed investment to expand 4.5% in 2014, which is up 0.1 percentage points from last month's forecast. In 2015, the panel sees investment growth accelerating to 4.4%.

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Germany Business Confidence Chart

Germany Business Confidence April 2014

Note: Ifo Business Climate Index, 2000=100.
Source: Ifo Business Survey.

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