Germany: Business confidence jumps to 17-month high in November
November 24, 2015
Confidence among German businesses improved notably in November. The business confidence index, elaborated by the Ifo Institute, came in at 109.0 in November, which was up from October’s 108.2. The reading overshot market expectations of the index remaining at October’s level and marked the highest reading since June 2014. According to the Institute, November’s rise reflects that firms grew more confident about both future business development and about the current situation.
Sentiment improved across all economic sectors except for retailing. Manufacturing registered the first increase after three months of falling sentiment and the Ifo Institute highlighted that, “the subindex for the automotive sector continued to rise despite the emissions scandal.” Confidence among wholesalers climbed to the highest reading since January of last year and sentiment in the construction sector reached the highest point since the German reunification. By contrast, sentiment fell in the retailing sector, mainly because retailers were less confidence about the future outlook. Overall, the Ifo Institue commented on November’s results in saying that, “the German economy remains unaffected by growing uncertainty worldwide. Not even the Paris attacks had a negative impact on survey data.”