Germany: Business confidence rebounds in May
May 24, 2013
The business confidence index published by the Ifo Institute rose to 105.7 points in May, from 104.4 points in April. The print represents the first improvement in three months and also defied market expectations, which had business confidence inching up to 104.5 points.
The monthly improvement primarily showed that businesses are significantly more optimistic about their current business situation, while respondents' assessment of their future business prospects remained unchanged compared to the previous month. The Ifo Institute added that "the German economy remains on track in a challenging European environment".
FocusEconomics Consensus Forecast panellists expect gross fixed investment to increase 0.2% in 2013, which is down 0.2 percentage points from last month's forecast. Next year, the panel sees investment growth accelerating to 3.7%.
Author: Ricardo Aceves, Senior Economist