Germany: Business confidence reaches a nine-month high
April 20, 2012
In April, the business confidence indicator published by the Ifo Institute inched up to 109.9 points from 109.8 points in March, defying market expectations that had the index dropping to 109.5 points. The index recorded the sixth consecutive improvement, pushing sentiment to its highest level since August 2011. The April result showed that businesses were more optimistic about the current business situation, with the sub-indicator rising to its highest level since September 2011. Meanwhile, respondents to the April survey showed their six-month business expectations unchanged compared to the previous month, with the sub-index sitting at 102.7 points, the highest level since August 2011. Owing to the monthly improvement, the Institute acknowledged that the German economy is proving resilient.
Author: Ricardo Aceves, Senior Economist