Germany: Business confidence drops in February
February 22, 2018
German business confidence fell from 117.6 points in January to 115.4 points in February, undershooting market expectations significantly. Nevertheless, confidence is still well-anchored above the crucial 100-point mark that separates optimism from pessimism among German businesses.
The downturn in sentiment was due to a less positive assessment of current business situation. That said, the sub-indicator was at its second highest level since 1991. Business expectations for the next six months were also less upbeat than the previous month in February. Sentiment across the four sectors covered by the confidence index (manufacturing, wholesaling, retailing and construction) deteriorated in February. Only the construction sector had a more favorable view on the current business situation while all sectors scaled down their business expectations in the months ahead.
Germany Fixed Investment Forecast
FocusEconomics Consensus Forecast panelists expect gross fixed investment to expand 3.8% in 2018, which is up 0.2 percentage points from last month’s forecast. In 2019, the panel sees investment growth moderating to 3.2%.
Author: Jan Lammersen, Economist