Germany: Business confidence rises for second consecutive month
December 18, 2013
The business confidence indicator published by the Ifo Institute increased in December and has now reached its highest level since April 2012. The indicator matched market expectations, coming in at 109.5 points, which was slightly above the 109.3 points registered in November. The print represents the second consecutive month of improvement after a slight drop in October. The December survey showed an improvement in businesses' expectations, which reached the highest level since March 2011. Conversely, firms' view of their current business was somewhat less favorable compared to the previous month. Ifo concluded that, "the German economy is in a festive mood." FocusEconomics Consensus Forecast panelists expect gross fixed investment to drop 0.9% in 2013, which is up 0.2 percentage points from last month's forecast. In 2014, the panel sees investment growth rebounding to 3.8%, which is up 0.1 percentage points over the previous month's projection.
Author: Ricardo Aceves, Senior Economist